Tally entry
Jivan (Office-Assistant) (59 Points)
16 September 2012
We have purchase fire extinguisher for company how to pass entry in tally... please help step by step ....
Gunjan Tulsyan
(Article)
(222 Points)
Replied 16 September 2012
if its cost is more than Rs.5000 then capitalise it as fixed asset so pass the following entry:
Fire Extinguisher/Office equipment A/c Dr. xxxx
To Cash/Bank/Party A/c xxxx
To VAT Payable A/c xxx
Remove VAT payable account in case ur a Service Industry. Or else in case it is worth Less than Re.5000 then Expense it out as office expense:
Office Expense A/c Dr. xxxx
To Cash/Bank/Party A/c xxxx
I hope ur query is solved....!!!! :)
Varshit Shah
(Self Employed)
(676 Points)
Replied 16 September 2012
Dear Jivanji
You have to expense out the cost of Fire extinguisher. Because you can not treat such euipment as Fixed Assets. As there is no such benefit will arise that will help you in day to day business. That is just for the Safety of your office. If you have smoke detection & automatic water supply facility then only you have to capitalise such thing.
Cash Purchase : Repairs & Maintenance A/c......Dr
To Cash
Credit Purchase : Repairs & Maintenance A/c.........Dr
To Creditors A/c
Creditors A/c.....................Dr
To Bank A/c.
@ Gunjan : Dear how can u credit VAT payable on purchase of item? How can it be VAT Payable? You already paid while purchasing it.
Corrected entry for your knowledge :
Extinguisher/Office equipment A/c Dr. xxxx
VAT Paid A/c Dr. xxxx
To Cash/Bank/Party A/c xxxx
Varshit Shah
(Self Employed)
(676 Points)
Replied 16 September 2012
Dear Jivanji
You have to expense out the cost of Fire extinguisher. Because you can not treat such euipment as Fixed Assets. As there is no such benefit will arise that will help you in day to day business. That is just for the Safety of your office. If you have smoke detection & automatic water supply facility then only you have to capitalise such thing.
Cash Purchase : Repairs & Maintenance A/c......Dr
To Cash
Credit Purchase : Repairs & Maintenance A/c.........Dr
To Creditors A/c
Creditors A/c.....................Dr
To Bank A/c.
@ Gunjan : Dear how can u credit VAT payable on purchase of item? How can it be VAT Payable? You already paid while purchasing it.
Corrected entry for your knowledge :
Extinguisher/Office equipment A/c Dr. xxxx
VAT Paid A/c Dr. xxxx
To Cash/Bank/Party A/c xxxx
Neeraj Singh
(Executive Account)
(94 Points)
Replied 17 September 2012
Dear All in my openion ... Entry Should Be..
Office Equipment Dr
Vat Recoverable Dr
To Cash/Bank
(If you Purchase fire Extinguisher and if your have TIN no. you can claim vat in next F.Y. in two part)
(If your Refill the Fire extinguisher then it will Dr. to Rep. & Matin.)
Ashish Kukreja
(CA Final Student)
(587 Points)
Replied 17 September 2012
I think fire extuingisher purchase should be treated as an asset rather than repair & maintenance item..I agree with neeraj that if refilled then only repair & maint..
Gunjan Tulsyan
(Article)
(222 Points)
Replied 17 September 2012
@ varsh*t thank you for correcting me...i actually haver mistaken the transaction...sorry the error is regretted...!!!
PRANIT
(ACCOUNTANT)
(219 Points)
Replied 18 September 2012
RESPECTED NEERAJJI
WHY U DEBITING VAT RECOVERABLE ACCOUNT IN UR POST
PLEASE CLARIFY........
Neeraj Singh
(Executive Account)
(94 Points)
Replied 18 September 2012
Becoz it will treat as an assets (Current Assets)
Next year when you will take credit of vat ,then it will be credited by laibility account (CST or VAT) Payable.
sachin jadhav
(CA)
(34 Points)
Replied 11 September 2016
i purchase fixed assets but credit base how pass entery in tally and which voucher entery
balbir
(self)
(37 Points)
Replied 29 February 2020
Ayush Lakhotia
(43 Points)
Replied 16 April 2021
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