Entries while selling goods
This query is : Resolved
08 June 2009
A manufacturing while selling goods in this form:
Sales Value: 100
Excise Duty: 8
Total 108
Here, co passes sales entry as:
Party A/c Dr 108
To Sales A/c 108
& after month end it passes entry for excise liability as:
Excise Exp A/c Dr 8
To Excise Payable 8
Now, I wants to know that whether it is must to do pass entries this way or Company can alternatively pass entries as:
On Selling Goods:
Party A/c Dr 108
To Sales 100
To Excise Payable 8
Payment at Month end for excise:
Excise Payable A/c Dr 8
To Bank A/c 8
Can u pls tell which of these two methods is required to be followed as per Excise rules?
Sales Value: 100
Excise Duty: 8
Total 108
Here, co passes sales entry as:
Party A/c Dr 108
To Sales A/c 108
& after month end it passes entry for excise liability as:
Excise Exp A/c Dr 8
To Excise Payable 8
Now, I wants to know that whether it is must to do pass entries this way or Company can alternatively pass entries as:
On Selling Goods:
Party A/c Dr 108
To Sales 100
To Excise Payable 8
Payment at Month end for excise:
Excise Payable A/c Dr 8
To Bank A/c 8
Can u pls tell which of these two methods is required to be followed as per Excise rules?
08 June 2009
Any of the method can be followed. Becz excise does not prescibe any particular method.
08 June 2009
Hi Jitender, I agree with u that Excise has not prescribed any particular method. But Excise says that Excise exp as paid to deptt shd be considered as Manufacturing Exp. What it means then?
11 June 2009
Any views from Experts!
14 June 2009
there is no accounting entry prescribed in Excise Law, only criteria to be followed that excise liability should be fully discharged.
The second method is more appropriate as it reduces duplication of Journal Entry
there is no accounting entry prescribed in Excise Law, only criteria to be followed that excise liability should be fully discharged.
The second method is more appropriate as it reduces duplication of Journal Entry
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