Journal entry

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 November 2013 Sir I receive the bill from security service Bill value-20000/-,& ST 25% 618/-,Total Bill Amount-20618/-,75% ST We have to pay so how can i pass the journal entry,entry passed below method is this correct r not? kindly guide me....

(75% Value of 20000/-)
(Indirect Exp)Service Tax 12% Dr-1800
(Indirect Exp)Edu Cess 2% Dr - 36
(Indirect Exp)sec Edu Cess 1%Dr - 18
To(Lia Ac)Service Tax Payable 12% -1800
To(Lia Ac)Edu Cess payable 2% - 36
To(Lia Ac)Sec Edu Cess Payable 1% - 18

Payment Entry
Service Tax payable Ac
Bank

Annu Agarwal

Annu Agarwal (Expert)
Follow

10 November 2013 The entry done is correct.But it is advisible that instead of debiting service tax you the debit the expense account itself.

Querist : Anonymous

Querist : Anonymous (Querist)

12 November 2013 Thanks for your reply.if i debit the actual expenses account,the original amount will be reduced

Annu Agarwal

Annu Agarwal (Expert)
Follow

12 November 2013 Sir
How can debiting the expense account can lead to reduction in the original amount .Please explain.May be I need to correct myself.

Querist : Anonymous

Querist : Anonymous (Querist)

13 November 2013 If deduct st actual exp a/c means
Security Charges a/c dr 20618
to party ac 20618

Journal Entry for service tax
Service tax a/c dr 1854
to security charges ac 1854

so security charges expenses ledger balance will be reduced rs.18764

it think it may be wrong r right u just clarify with any expert iam a beginner thats y...

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
Follow

02 August 2024 https://docs.google.com/document/d/17zub7ok6buAOS3A0-ZpgRv9zX6pPeV_gybwM79YYbtk/edit?usp=sharing

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

DHANASHRI KARMARKAR

CA Aakarsh Jain

Michael & Co.

divakar podaturu

sachingurav

Subscribe Now

Journal entry

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA