Accounting entry

This query is : Open

sushant gurav (Querist)
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31 May 2014 Sir,
Please tell me ..

In financial year 2010-2011 we passed a entry for VAT receivable for Rs. 120,930.00

since output Vat was showing 1,20,930.00 at the end of the year it was transfered to Vat receivable by passing below entry.

I.E VAT receivable a/c .1,20,930.00
To Output Vat a/c 1,20,930.00

Now after assesment, Vat authorities disallowed our 1,20,930.00 due to other reason , now i have passed revered entry in current year exactly opposit as shown above.

now Output a/c shows Dr. balance of 1,20,930.00.
My Query is ,i want to nullyfy output account, then which account should be debited. ( since 120930.00 should be adjusted)

kindly suggest

Guest

Guest (Expert)

31 May 2014 this must be part of purchase na......

i think u had done mistakes...

let me clear it completely

sushant gurav

sushant gurav (Querist)
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02 June 2014 ya this is a purchase entry.

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