Journal Entry

A/c entries 1940 views 9 replies

Please Suggest me the Journal Entries for Following Transaction.

Purchase Capital Goods Worth Rs 500000.

Excise Duty on same 50000

CST 10000

Since ED is Allowed in Two Financial Year then What will be the Entry .

Replies (9)

Capital Goods A/c Dr       500000  Dr

Cenvat Credit Receivabvle  2009-10      25,000 Dr

Cenvat Credit Receivable  2010-11    25,000  Dr

CST       10,000   Dr

 To  Supplier's Ac/ Bank A./c or Cash Account        5,60,000

 

as excise duty is allowed input credit can be obtained from that....but in case of CST no input credit is allowed. hence the amount paid for CST should form part of the value of capital goods and should be capitalised. No CST a/c should be debited seperately...

  TO SUPPLIER'S A/C / BANK A/C                      5,60,000.00

CAP. GOODS A/C                                  DR.             510000

CENVET CR RECEIVABLE 09-10          DR.                25000

CENVET CR RECEIVABLE  10-11         DR.                25000

   TO SUPPLIER/BANK                                                                      560000

                     

correct

 

 

vijendra's entry is right

ya Vijendra is correct (CST is not cenvatable)and ED shall be adjusted in 2 year

good


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