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METHOD OF ACCOUNTING IN TALLY PRIME

DHRUV (student) (117 Points)

01 April 2024

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.

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9 Replies

Yasaswi Gomes new (Finance ) (4486 Points)
Replied 01 April 2024

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.

sabyasachi mukherjee (26132 Points)
Replied 02 April 2024

Method of accounting in tally prime

RAJA P M ("Do the Right Thing...!!!") (127227 Points)
Replied 02 April 2024

@ Mr DHRUV,

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

DHRUV (student) (117 Points)
Replied 02 April 2024

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?

Yasaswi Gomes new (Finance ) (4486 Points)
Replied 02 April 2024

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

RAJA P M ("Do the Right Thing...!!!") (127227 Points)
Replied 02 April 2024

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)

RAJA P M ("Do the Right Thing...!!!") (127227 Points)
Replied 02 April 2024

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)

NARENDRA (ACCOUNTS MANAGER) (1498 Points)
Replied 03 April 2024

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.