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https://help.tallysolutions.com/docs/te9rel49/Service_Tax_New/Money_Equivalent_Transaction.htm

Accounting Money Equivalent Transactions

Any consideration (something in return) received towards services provided or paid towards services received in a form other than money is called Money Equivalent.

Tally.ERP9 allows the user to record money equivalent of consideration transactions. It also allows the user to record money equivalent transactions for Advance receipt. Against this, the user can record a sales transaction as well.

Example:

 

On 23-4-2010 ABC Company Sold Event Management Services to Krypton Agency for Rs. 50,000(inclusive of tax) Bill No. ABC/792

 

On 24-4-2010 ABC Company purchased Advertising services from Krypton Agencies for Rs.

60,000 (inclusive of tax) Bill No. KA/642/10-11

 

On 24- 4-2010 ABC company instead of making payment to krypton Agency towards Advertising services of Rs. 50,000 purchased (Tax Bill -Purc/7-1 dated 24-4-2010,Bill No- KA/642/10-11) they are adjusting this bill towards the services sold (Tax Bill -Sale/9-1 dated 23-4-2010, Bill No- ABC/792) on which the payment is pending from Krypton agency.

Before making the above money equivalent transaction, ensure the Purchase and Sale entry is recorded.

Record the Transaction in Journal Voucher

To account Money Equivalent Transactions through Journal, create the Voucher Class in Journal Voucher. To create voucher class refer - Create the Voucher Class in Journal Voucher

To record the Journal voucher

Go to Gateway of Tally > Accounting Vouchers > F7: Journal

  1. In Change Voucher Type screen, in Class filed select Service Tax Adjustments

  2. Press F2 and change the date to 24-04-2010

  3. In Used for field select the flag - Money Equivalent of Consideration

  1. In Debit field select Krypton Agency ledger and press enter to view Service Tax Details screen

  2. In Service Tax Details screen

  3. In Type of Ref field select Agst Ref

Note: To record an advance receipt for Money Equivalent Consideration, select Advance in the Type of Ref. field. Using this method of adjustment, a sales transaction can be recorded against the Advance receipt.

  1. In Name field select Purc/7-1 dated 24-4-2010 from the Pending Tax Bills

  2. Based on the Tax bill selected Type of Service, Category, Amount (incl. of Tax) and Service Tax details will be defaulted

  3. In Amount (incl. of Tax) field enter Rs. 50,000

  1. In Debit amount field Rs 50,000 will be displayed automatically.

  2. In Bill-wise Details screen

  3. In Type of Ref field select Agst Ref

  4. In Name field select KA/642/10-11 dated 24-4-2010 from the Pending Bills

  5. Amount will be defaulted automatically.

  1. In Credit field select Krypton Agency and press enter to view Service Tax Details screen

  2. In Service Tax Details screen

  3. In Type of Ref field select Agst Ref

  4. In Name field select tax bill Sale/9-1 from Pending Tax Bills

  5. On selecting the Tax bill Type of Service, Category, Amount (Incl. of tax) and Service Amount details will be defaulted.

  1. In Credit amount field Rs 50,000 will be displayed automatically.

  2. In Bill-wise Details screen

  3. In Type of Ref select Agst Ref

  4. In Name field select ABC/792 dated 23-4-2010 from the pending Bills list to adjust towards receipts

  5. Amount will be defaulted automatically to Rs. 50,000.

The completed Journal voucher is displayed as shown

  1. Press enter to accept and save.

Note: Details of Money Equivalent transactions will be captured in 3F (I) (b) section of Form ST3

Tally.ERP 9 also allows the user to record Money Equivalent transactions for an Advance Receipt

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