Excise Duty in Tally.ERP 9

To study the accounting treatment of excise duty in Tally.ERP 9 is useful for manufacturers and dealers. All they have to pay net excise duty to Govt. account. They have to calculate excise duty on purchase and sale. On purchase, they have to pay the excise duty and on sale, they get excise duty. Difference will be paid into Govt. account.


Following are the accounting treatment of Excise Duty in Tally.ERP 9 :-

1st : Change the Statutory Features of Tally.ERP 9 

First of all, you have to go to the gateway of tally.erp 9. In right side below, you see feature button. In this, you have to enable excise duty yes. 

2nd : Create the Ledger Accounts

In ledger creation of Tally.ERP 9, you need to create following ledger accounts

1. Purchase Account - Excise

It will keep under purchase account. 

2. Sales Account - Excise

It will keep under sales account.

3. Creditor Account - Excise

It will keep under sundry creditor account.

3. Debtor Account Excise 

It will keep under sundry debtor account. 

4. Excise Duty Account

It will keep under duties and taxes

5. Education Cess Account 

It will keep under duties and taxes

6. Secondary Education Cess Account 

It will keep under duties and taxes


3rd : Pass the Voucher Entries in Journal Vouchers

Now, start pass the voucher entries in journal vouchers.

For buying  Goods for production

Purchase (excise)  Account Debit

Excise Duty Account Debit
Education Cess Account Debit
Secondary Education Cess Account Debit

Creditor (excise) Account Credit

For Selling Goods to Second or First Dealer or Manufacture 

Debtor (excise ) Account Debit

Sales (excise) Account Credit
Excise Duty Account Credit
Education Cess Account Credit
Secondary Education Cess Account Credit

4th : Check Balance of Excise Duties in Duties and Taxes

We can check the balance in balance sheet's liabilities side by opening it in Tally.ERP 9.

Related : Journal Entries of Excise Duty