METHOD OF ACCOUNTING IN TALLY PRIME

I am a job worker of jewelry. my client gives me raw gold via delivery challan. i conduct job work on the raw gold and return the item to the client. How to do the journal entries in tally prime so that when the material is received, my closing stock does not increase i.e. my profit does not increase.

Replies (9)
Quick Summary
This discussion clarifies how jewellery job workers using Tally Prime should account for raw gold received from clients. The consensus is that raw gold provided for job work, typically via a delivery challan, should not be included in the job worker's closing stock or affect their profit and loss. While some suggest maintaining separate records for such materials, they should not be booked as inventory within the main accounts to avoid inflating turnover and potential issues.

depends on the nature of your income.

If it is commission/fee that you get from client, no need to record inventory.

If you have a relation where risk is transferred to you, you have to account for inventory.

 

 

Method of accounting in tally prime
@ Mr DHRUV,

Your query is not clear.
So, ask Your query in correct way.
it's for helping to understand Your query...

In simple terms if a job worker receives an item on delivery challan for job work, will that item form part of the job worker's closing stock?

No! Your not a principle agent to report inventory when you don’t claim risks or rewards. You have to purchase inventory in order to record it. You can record it personally on a receipt. Inventory has a fair value which is derived from arms length commercial transactions. Since you don’t get any economic benefit from it, take your contract revenue and that’s it

Will that item form part of the job worker's closing stock?

---> No. it's not stock of job worker. So no need to show the items in your stock and PandL...

(in case you want to maintain that stocks in your end then you can maintain separately. it's can't include in Your accounts)
Originally posted by : DHRUV
In simple terms if a job worker receives an item on delivery challan for job work, will that item form part of the job worker's closing stock?

Will that item form part of the job worker's closing stock?

 

---> No. it's not stock of job worker. So no need to show the items in your stock and PandL...

 

(in case you want to maintain that stocks in your end then you can maintain separately. it's can't include in Your accounts)

My answer may differ from everyone, but for the sake of clarity of vision as well as for your reference you should have booked all the jewelry as inventories with no value via receipt note & should make a delivery challan when you do the job, this D C you may attach while making invoice. This is just for not to arise any problem in future also the standard of accounting maintained.

You can book an inventory  in the vouchers only. But adding unwanted things can add up to turnover and other calculations like wc

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details
Company
23 October 2026
Sr. Accountant

SANKARAN & KRISHNAN

New Delhi

B.Com

View Details
Company
ARTICLESHIP 17 October 2026
Articled Assistant

RRPM & Associates LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details
Company
ARTICLESHIP 23 October 2026
Articled Trainee

J Y & CO

Hyderabad

CA Inter

View Details
Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details