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Accounting treatmrnt for deduction of payment

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Querist : Anonymous

Querist : Anonymous (Querist)

30 May 2011
Dear Experts
How deduction due to price variation should be accounted ?

Suppose for a product Trisala , we billed @Rs 50/ per pieces where as it's rate as per purchase order was Rs 45/- and we did't noticed the same till we received the payment .They make payment as per purchase order .
So how Rs 5/- (rS 50-45)will be accounted .
Further we are excise manufacturer

Thanks & Regard

Kumar Babu.G

Kumar Babu.G (Expert)

30 May 2011 Reverse previous entry for the excess amount.ie.,

Sales a/c Dr
Taxes a/c Dr
To Debtor a/c

Querist : Anonymous

Querist : Anonymous (Querist)

30 May 2011 Dear Kumar Babu

can we debit sales account even we are not receiving goods .
Further as far as excise duty and vat are concerned if we are debiting tax amount means we are minimizing our tax liability by that amount . Is that valid under excise act .
plz clarify

Thanks for your reply .

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