A/c entry ...??????

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Our Company has Purchased 100 bags Taxable Item from suppliers for sale... but these bags out of 20 bags used for our office use  i.e. Expenses ...So What is entry made in Tally .ERP 9 ? How can show effect on closing Stock ??????

 

THANKS IN ADVANCE

Replies (18)

Stock a/c dr. 

Supplier a/c       

(Purchase)

Expense a/c dr.

to Stock 

(Stock treated as expense)

Is it rite?

 

 

You will first post a Purchase Entry ie.) Purchases A/C Dr. To Supplier A/C. On payment, Supplier A/C Dr. To Bank A/C. For the part which is used for Office Purpose, you can raise a Journal : Office Maintenance A/C Dr. To Purchases A/C. Correct me if am wrong

Purchase A/c           dr

   to Supplier A/c

Being goods purchased.

expense a/c          Dr

    to Purchase A/c

Being used for office use.

 

You use journal voucher to pass 2nd entry. and adjust the stock.......

Thank u for suggetionsmiley

But I entry made as follows-

Purchase A/c..........Dr  To Parties A/c  100 Bags But...

About 20 Bags I want do Entry as Expenses A/c.......Dr To Sale A/c But this Entry not allow in Tally.ERP......  ????

 

 

 

THANKS ALL CCI FRIENDS

PROBLEM SOLVE cheeky

Hai seema,

I dont think exp A/c Dr. to sales A/c is correct. Because it may rise the liability of VAT. you have to pay VAT then. so its Exp A/c to Purchase A/c is correct

 

Originally posted by : vinodh

Purchase A/c           dr

   to Supplier A/c

Being goods purchased.

expense a/c          Dr

    to Purchase A/c

Being used for office use.

 

agreed with vinoth,this entry is correct.
 

Thank u sir for your valuable suggestion.

I entry made as follwos -

Expenses A/c...............Dr    ( 20 Bags )

            To Purchase A/c

THIS IS RIGHT ?

AGREE WITH VINODH

Donot forget to reverse the Input tax credit as well, since the ITC on goods used for personal purposes is not allowed.

Dear all

I think entry will be if  One bags Cost is Rs. 100 *100 =10000.00

Supplier A/c                                         10000.00

Dr  Purchase a/c  5%        7619.00 

Dr  Input Vat A/c   5%           381.00

Dr Office Expenses           2000.00

Becouse Input Vat Credit is not applicable on office used.  Only input vat credit on sales. 

Stock a/c                  7619.00

to Purchase a/c     7619.00

Thank in advance if any wrong pls inform us

 

 

 

Vat credit is not available if goods are used for personal purpose... But if goods are used for the purpose of business, there are no restrictions for availing input tax credit...

When u received 100 bags entry would be

--Purchases Dr    100 ( This will mk your inventory 100) (Inventory Dr)

--Vat receiaveble Dr (Applicable rate)

---To Party Credit .

 

When u distribute the same ( You need to take 20 bags out of the stock)

Expense a/c dr ( Expense head can be ; Advertisment, damage as well).

To Purchases cr ( Inventory Cr)

 

One more way of accounting which is actually a bit fradulent type would be

Inventory a/c dr ( For 80 bags) ( Amt Total bill value for 100 bags ) ( Your per unit cost will go up here)

To supplier ( bill amt)

 

 

 

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