Today, we will teach you how to record expenses with GST in Tally.ERP 9. Now, we have to record the expenses as the purchase of service. First we pass the voucher entry in the purchase voucher and then we pay, we will pass the voucher entry in payment voucher.
1st Step : Enable GST in Tally.ERP 9
Just go to tally gateway and then go to feature setting. Again go to statutory and taxation feature. Enable GST as yes and save this setting.
2nd Step : Create Expenses and GST Ledger
Now, first you need to create the party ledger by go to account info and ledger and create. Create party name who has given the service to you and you have to keep it under sundry creditor. For example, you are taking Internet services from connect company, keep connect company under sundry creditor. After this, you need the name of service which you are taking from this company. Create its ledger under indirect expenses. For example, I need to create Internet bill under indirect expenses. You must applicable GST it. Except this, you will also create following ledger accounts
Bank under bank account
Central tax under duties and taxes and type will GST
State tax under duties and taxes and type will GST
3rd Step : Pass the Voucher Entries in Purchase Voucher and in Payment Voucher
First you have to go to accounting vouchers for voucher entry. Select purchase voucher. In purchase voucher, select the party first and then show his service which you bought. Show the amount and then you will just show central tax of GST which will be automatically catch and also show state tax for GST which will automatically catch. Now, accept this entry.
If you will paid after invoice, pass the voucher entry in payment voucher.
Service provider account Debit
Bank account Creditor
In my case
we will show the bank account first and then pass the entry by showing party name and given total amount include total gst amount
After passing the entry, you can check its correctness by vising balance sheet which will show the deduction of your previous bank balance and same amount will cancelled with profit and loss account and duties and tax and your accounting equation will be ok. You can also check the statutory reports by going to statutory reports, then go to GST and go GSTR -2
Like this, you can pass all expenses voucher entries and you will succeed to record all your expenses.
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can we pass Journal entries for the expences bill having charged GST
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