Increase in Tax Liability - Penalty (Andhra Pradesh)

Tax liability due to interest can be adjusted by creating a journal for penalty payable.

To record journal entry to account for penalty payable

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

2.     Click J: Stat Adjustment.

3.     Debit an expense ledger created under Indirect Expenses, with option Is VAT/CST Applicable? set to Not Applicable.

4.     Credit the ledger created under Current Liabilities. The completed screen appears as shown below:

5.     Press Enter to save.