Exicise duty payable on sale of product showing as income under indirect income head.Is it right procedure of accounting?
Anoopa H P (Member of ICAI CS Executive) (192 Points)
23 June 2011Exicise duty payable on sale of product showing as income under indirect income head.Is it right procedure of accounting?
Deepesh Khatri
(CA)
(167 Points)
Replied 23 June 2011
It can be done, but at the end of every month such excise duty levied should be transferred to current liabilities.
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 23 June 2011
IT SHOULD BE UNDER CURRENT LIABILITY
Omprakash Agarwal
(accountant)
(43 Points)
Replied 23 June 2011
ALL TAXES AND DUTY IS ALWAYS LIABILITIES NOT INCOME WHICH WE HAVE TO PAY TO GOVT. IN
CURRENT PERIOD OR FUTURE PERIOD .
Priyanka Bhatnagar
(Accounts & Finance)
(44 Points)
Replied 23 June 2011
I think the entry should be-
Dr. Debtor A/c 100
Dr. ED received 12
Cr. Sales A/c 100
Cr. ED Payable 12
Please correct me if my understanding is incorrect
Anoopa H P
(Member of ICAI CS Executive)
(192 Points)
Replied 23 June 2011
Entry should be like this
Debtor A/c Dr 112
To Excise payable A/c 12
To Sales A/c 100
CAclubindia
