| # Financial postings for AS SUCH sale of capital goods This functionality is specific for India. The financial postings for the reversal of CENVAT credit and for sale of the AS SUCH capital goods are explained with the following example. Example Capital goods are purchased for INR 100 with Excise duty as INR 16 and sold for INR 120, CENVAT credit for INR 8. Note The ledger accounts are defined for each excise tax code in the Posting Data for Tax Codes (tfgld0171s000) session. The Supplier Control and Customer control account are defined in the Accounts by Financial BP Group (tfacp0110m100) session. Step 1. On purchase of Capital goods you can avail 50per cent of the CENVAT credit and the balance is transferred to Deferred account.
Debit/ Credit | Ledger Account | Amount
--- | --- | ---
Debit | Capital Goods | INR 100
Debit | CENVAT Credit Available | INR 8
Debit | CENVAT Credit Deferred | INR 8
Credit | Supplier's control | INR 116
Step 2. On AS SUCH Sale of Capital goods :
Debit/ Credit | Ledger Account | Amount
--- | --- | ---
Debit | CENVAT Credit Available (capital goods) | INR 8
Credit | CENVAT Credit Deferred (capital goods) | INR 8
Debit/ Credit | Ledger Account | Amount
--- | --- | ---
Debit | Customer Control | INR 136
Credit | CENVAT credit available (capital goods) | INR 16
Credit | Capital goods | INR 100
Credit | Profit on sale of capital goods | INR 20
Related topics Excise duty process for AS SUCH Sale of Capital goods |