LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Scrap sold out entry

Dinesh@123 (Account Executive) (64 Points)

08 October 2021

how can we record entry in tally of scrap sold out?

Reply
Follow
Share

2 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14167 Points)
Replied 08 October 2021

As per section 7 of the CGST act 2017 , GST applicable on sale of scrap ,so you have to issue tax invoice .

Booking entry will be

Trade Debtor's A/c Dr
To Scrap sale A/c Cr
To CGST A/c Cr
To SGST A/c Cr
( Booking of Scrap sale )

When you receive payment pass entry

Cash / Bank A/c Dr
To Trade Debtor's A/c Cr
( payment received , sale of scrap )

Note - Take Scrap sale A/c under Direct Income , Trading Account .
In Tally 1 entry will be under sales and 2 nd entry under receipt .