Acounting entry - excise

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'A' manufacture sold goods to 'B' First stage dealer as follows

Purchase 10000
Excise     500
Edu cess    10
S&H cess     5

Then 'B' First Stage dealer sold goods to 'C' a manufacturerfor Rs. 17000.

Can anyone please explain the journal entries to be passed in the books of C.

Replies (5)
The first stage dealer has to pass the excise duty to his customer at similar rate of excise duty as per his purchase invoice. Kindly ensure it and pass the entry as usual you pass the entry when you purchase from the purchaser.
Originally posted by : Santhu

'A' manufacture sold goods to 'B' First stage dealer as follows

Purchase 10000
Excise     500
Edu cess    10
S&H cess     5

Then 'B' First Stage dealer sold goods to 'C' a manufacturerfor17000.

Can anyone please explain the journal entries to be passed in the books of C.


Goods ..a/c Dr

Exice Tax a/c Dr

Edu Tax   dr

S& H Dr

   To  B'Dealer a/c

In my view the accounting entry will be:

Purchases a/c Dr

To B' Dealer A/c

(Being goods purchasesed as per invoice no....dt:   Qty & rate to be mentioned)

purchase a/c debit rs.16485/-

cenvat credit receivable A/c debit rs.500/-

edu cess receivable a/c debit rs.10

sh.edu cess receivable a/c debit rs.5/-

to party a/c ( ' B ' a/c ) credit rs. 17000/-

 

VAT leviablilty in case of sale should also be considered....

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