Capital goods return to party under11 excise invocie

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2011 We purchase Welding Machine from A
That time entries was pass
Capital goods (Under Fixed Assets) Dr 100
Excise Duty 10.3% Dr 10.30
Party (A) Cr 110.30

After some time we return welding machine to Party under excise invoice rule 11
My quire is that it is count in sale or less my assets because my accounting software making invoice only inventory items not Capital goods.
I make entries for Return to welding machine
Party A/c Dr 110.3
Sales Accounts with inventory Cr 100
Excise Duty 10.3% Cr 10.30

For less our Assets accounts
Sales account Dr 100
Welding machine A/c Cr 100

It is right or wrong kindly suggests me with full details.

U S Sharma

U S Sharma (Expert)
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08 September 2011 "after some time" should not be more than a quarter, ( depriciation charge time under excise rules)

at the time of cleaqrance you have to shift the capital goods to inputs and then make sales invoice.

stock in hand a/c dr
to Capital goods

now your entries wil go in row

Querist : Anonymous

Querist : Anonymous (Querist)

10 September 2011 We purchase Welding Machine from A
That time entries was pass
Capital goods (Under Fixed Assets) Dr 100
Excise Duty 10.3% Dr 10.30
Party (A) Cr 110.30

After two months we return welding machine to Party under excise invoice rule 11

I make entries for Return to welding machine
Party A/c Dr 110.3
Sales Accounts with inventory Cr 100
Excise Duty 10.3% Cr 10.30

For less our Assets accounts
Sales account Dr 100
Welding machine A/c Cr 100

Will this welding machine return transaction increase our sales or only effect will go in Assets account. In which Excise Register (RG) we have to take this entry.

U S Sharma

U S Sharma (Expert)
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11 September 2011 for capital goods RG1 is not to be maintained but RG23C

Querist : Anonymous

Querist : Anonymous (Querist)

12 September 2011 Will this welding machine return transaction increase our sales or only effect will go in Assets account

U S Sharma

U S Sharma (Expert)
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13 September 2011 it will not increase your "manufacturing sales" but effect the capital assets accounts.

Querist : Anonymous

Querist : Anonymous (Querist)

16 September 2011 at the time of Purchase Capital Goods we have to take this entry in RG 23C Part1 & II
now when we return this Capital Goods it will be also come in RG 23C Part1 & II as Negative figure.

U S Sharma

U S Sharma (Expert)
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17 September 2011 as RG23C credit is used for clearance for goods, u can debit the amount from any credit balance in PLA

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