[CAJIGARDOSHI]

Hi,

I purchase material worth 10000. Purchase Bill includes 1000 for excise + 1000 for sales tax and 1000 for octroie. Together, I got purchase bill of 13000/-. What entry is required to be made ?

How I will get credit for these credit and what entry is required to take that credit ?

Regards,

Jigar

[morgaine300]

I don't know where you're at, but in the U.S. generally everything that goes into buying and getting an asset goes into the cost of the asset. I'm not sure what these "materials" are for, but sounds like something you'll be using to make into something else? Well, as long as it's an asset, the rules should still count. So "everything" that goes into buying and getting the assets can include taxes, transportation, insurance, etc. I don't know what "octroie" is. (Don't know if that's just a bad translation or what, because it doesn't sound like any word I know. Sounds almost French.) I'd be tempted to say it's probably included too, but there are some exceptions, so I'd rather know what that is.

So you debit the asset for the total cost and assuming you haven't paid this bill yet, it'd be a credit to accounts payable.

I don't know what you mean by "how you will get credit for these credit." The term "getting credit" generally means having something taken off your bill, like because you returned it, and I don't think that's what you're meaning.