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Clarification in excise entry

Others 546 views 1 replies

While audit one of the company , I am confuse in their Trial Balance there is an expense of Excise duty expense on monthly basis, though they recover same from client , however they also recover sales tax from their client . 

Then my query is why sales tax expense is not in their trial balance and excise duty is their, although both are recover from clients through their sale bill?

Replies (1)

Please go thrugh the sales accounting being done by the Company. Analyse each of the item being posted in which head. It is possible that basic+excise might have been posted to sales account and other to their respective heads. Hence the duty paid is being debited to excise expenses account.


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