Accounting and vat treatment

This query is : Resolved

vinod kumar (Querist)
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13 May 2017 Sir i have purchased some items so my query is relating to accounting entry for purchase
for this invoice detail is given below

Particular. Amount
100 kg soap. 5000
+20 kg soap free.

Vat @ 4 %. 200

Total bill amount. 5200

Sir please tell me how I pass accounting entry of 100 kg +20kg free soap

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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13 May 2017 You have to spread that Rs. 5000 over 120 units (100+20 free) so
Per Unit cost of soap is Rs. 41.67 (5000/120)

and accounting entry is just like as in normal circumstances

Purchase A/c(120*41.67) Dr.4999.20
Input VAT A/c Dr. 200.00
Rounding off A/c Dr. 0.80
To Party A/c 5200