accounting enteries for vat
This query is : Resolved
07 July 2010
Sir,
ours is ahospital. and has a pharmacy connected to it. every month we pay Vat on the following basis: Vat on Sales minus Vat on purchases , say it is XXX. I pass an entry as follows: Vat a/c Dr. XXX
To bank a/c XXX
For purchases the entry: purchases a/c Dr.
To bank (amt including VAT)
and for sales it is Bank a/c Dr.
to Sales A/c (amt including vat) is this right? if wrong please give the correct entries. i hv read somewhere that vat input a/c, vat output a/c has to be opened. how is this done. or is it ok with what i am doing.
ours is ahospital. and has a pharmacy connected to it. every month we pay Vat on the following basis: Vat on Sales minus Vat on purchases , say it is XXX. I pass an entry as follows: Vat a/c Dr. XXX
To bank a/c XXX
For purchases the entry: purchases a/c Dr.
To bank (amt including VAT)
and for sales it is Bank a/c Dr.
to Sales A/c (amt including vat) is this right? if wrong please give the correct entries. i hv read somewhere that vat input a/c, vat output a/c has to be opened. how is this done. or is it ok with what i am doing.
07 July 2010
no u r doing wrong
open a vat input a/c- in Current Assets(Duties & Taxes)
at purchase
Purchase Dr
Vat inputDr
Cash/Bank/Creditor Cr
Open a Vat Output account - in current liab (Duties & Taxes)
At sales
Cash/Bank/Debtor Dr
Sales Cr
Vat Output Cr
At the end of Tax Payment period Pass this entry
Vat output Dr.(with amount o/s in this a/c)
Vat Payable Cr
&
Vat Payable Dr(with amount o/s in this a/c)
Vat Input Cr
& the net amount in Vat Payable wil be paid
Vat Payable Dr
Bank/Cash Cr
open a vat input a/c- in Current Assets(Duties & Taxes)
at purchase
Purchase Dr
Vat inputDr
Cash/Bank/Creditor Cr
Open a Vat Output account - in current liab (Duties & Taxes)
At sales
Cash/Bank/Debtor Dr
Sales Cr
Vat Output Cr
At the end of Tax Payment period Pass this entry
Vat output Dr.(with amount o/s in this a/c)
Vat Payable Cr
&
Vat Payable Dr(with amount o/s in this a/c)
Vat Input Cr
& the net amount in Vat Payable wil be paid
Vat Payable Dr
Bank/Cash Cr
Message likes :
1 times
07 July 2010
AGREE WITH AKHIL JI
BUT AT THE END OF THE MONTH YOU CAN PASS THE ENTRY BELOW:
VAT OUTPUT ----------DR
TO, VAT INPUT
TO, BANK(BALANCE)
BUT AT THE END OF THE MONTH YOU CAN PASS THE ENTRY BELOW:
VAT OUTPUT ----------DR
TO, VAT INPUT
TO, BANK(BALANCE)
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