Journal entry in manufacturing co.

4303 views 17 replies

what journal entry will be passed in the books in case of a cement manufacturing company if cement is given in charity to NGO?

Replies (17)

Charity A/c   Dr.

 To Cement (Finished stock)

Debit can also be given to Free Samples

DON'T FORGET TO CREDIT APPLICABLE TAXES LIKE SALES TAX AND EXCISE

it is necessary to credit CE & ST?

then we have to pay to these liabilties out of our pocket?

pls clarify me

YES EXACTLY IT IS TO BE PAID I M SURE ABOUT EXCISE BUT FOR ST NOT 100% SURE IN CASE OF CHARITY THERE MAY BE ANY EXEMPTION

Debit the charity ( Donation) and Credit the stock.

 

I have one doubt if cement company has given cement to NGO as donation , here taxes (ST, CST, VAT, etc.) are applicable or not, Pls explain me

Excise  Duty will be there but No VAT OR CST  for Free of cost Invoice

Charity                     Dr.

To Purchases

(Note : Also Credit the all taxes whatever we have given at the time of purchases)

Sir, How we can credit the purchases because we purchased only raw-material and  cement is finished product

CHARITY A/C DR

To Goods (Cement) A/c

Since the Quantity of Cement is given in Charity, the levis will be exempted.  I am not sure about Taxes and Levis.

Agreed with deepesh

Charity A/c Dr

          To Stock a/c (finished good i.e.cement) 

 

In my opinion ,Departments are not concerned with whether the goods are sold in the normal course or given as charity

hence the goods are subject to all the Levies i.e excise ,sales tax etc

DONATION &CHARITY A/C DR TO SALES TO EXCISE DUTY TO CESS ON EXCISE DUTY TO SALES TAX
DONATION &CHARITY A/C DR TO SALES TO EXCISE DUTY TO CESS ON EXCISE DUTY TO SALES TAX

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
19 June 2026
Accounts Executive

Getfive Advisors Pvt. Ltd.

Ahmedabad

CA Inter

View Details
Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details
Company
22 June 2026
Finance Manager- Chartered Accountant

Triveni Turbine Limited

Bengaluru

CA

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 30 June 2026
2 posts Article assistant and Articleship completed students

Chirag N Shah & Associates

Mumbai

CA Inter

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 30 June 2026
Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details