19 January 2017
Dear Sir, What will be the accounting entries for the following transactions:- 1. Purchased goods worth 44100 and paid cst@2% on it. 2. Sold goods on credit to party for 90000 add vat @6%(90000+5400=95400) 3. Party deposited the vat amount of 5400 via challan to the department Deducted 1200 as income tax and paid to IT department Paid rest amount of ₹88200 via cheque Kindly reply as soon as possible
1. CST is your expense hence you can club it in to purchase. - Purchase A/c Dr... 44982 to Party Ac..............44982
2. For Sales - If party had deducted 1200 as TDS then he had paid Rs. 88800 and not 88200 - Party Account Dr........94,200 TDS Receivable Dr....1,200 TO Sales Ac..................90000 To VAT Payable.............5400
3. VAT Deposited by Party. VAT Payable Dr..........5400 To Party Acc.............5400
CAclubindia
