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Adjustment of Output & Input GST through Journal Voucher We have lots of queries to do adjustment of Input and Output in a very easy manner. Adjustment entries provided in earlier post are not so difficult but as a beginner some people unable to pass those adjustment entries. So today we teach you very simple adjustment entries. As a basic nomenclature, out output liability is on Cr. side and Input credit is on Dr. Side, but reverse charge mechanism is on both side Dr. and Cr because 1st Reverse Charge Liability will be booked and after payment the same can be booked as input credit. So today we know this in very easy mode. For Example, we purchase goods from Ravi Enterprises for Rs. 25000 and CGST and SGST thereon is Rs. 1500/- on each respectively @ 6% each. It means our Input Tax Credit is Rs. 3000 as CGST Rs. 1500/- and SGST Rs. 1500/-. Entry will be passed as follows: Cr. Ravi Enterprises                 28000/- Dr. Purchase A/c                                 

Sales & Purchase Voucher Types - Learn Entry concept with 3 methods As you know, GST was implement from 1st July, 2017 and after this the whole accounting process was changed. In VAT & other tax regime there is some certain cases of input credit and there was no requirement for maintain stock monthly. But after GST you can claim input tax credit on almost each expenses.  For Example, credit always available on trading goods purchase for business, but you can claim input on the expenses which will be use in furtherance of business like telephone expenses, printing & stationery, bank charges etc. For claiming input tax credit you need to pass journal voucher and enter the input amount manually. But in this post we teach you to how to get input credit through purchase entry instead of passing journal & how to maintain your direct or indirect income also and generate output liability.  In our previous post  Manage accounts with or without Inventory   we discuss f

What is year end provisions and how to Enter in Tally? A provision is an amount set aside from a company's profits to cover and expected liability or a decrease in the value of an asset, even though the specific amount might be unknown. A provision is not a form of savings, instead, it is a recognition of an upcoming liability. First we know about what is provision expenditure and liabilities which is payable to next year. Provision is the year ended expenditure or liability which will be payable to next year e.g. Salary Payable (for March), Bonus Payable, Leave Encashment Payable or all other expenses which will be paid in next year but period of expenses is current year. Suppose you have telephone bill for the month of March but it is paid in April, it means expenses incurred in March (which is year end) and paid in April so in this case we pass a journal entry like: Dr. Telephone Expenses  Cr. Expenses Payable or Telephone Expenses Payable In case of Salary

How to charge Freight, Transportation, Packing or any other Expenses in GST Invoice? Recently we have so much query about how to show freight, transportation, packing or any other expenses in GST invoice with Tax Liability. For Example: Ramesh sold goods of Rs. 50000 to Suresh and charge freight charge seperatly in invoice @ 1.5% of total sale value then CGST and SGST @ 9% each. Then entry will be like below: Dr. Suresh Rs. 59750 Cr. Taxable Sales             Rs. 50000 Cr. Freight             Rs. 750 Cr. CGST @ 9%             Rs. 4500 Cr. SGST @ 9%             Rs. 4500 Now we see how to calculate Freight automatically on value or on quantity.  For Create Freight Ledger - Go to Gateway of Tally - Accounting Info - Ledger - Create. Select yes to GST Applicable and define the applicability of Tax for which Freight will be charged.  Press enter to save the ledger creation. Create a Sales Accou