Entry of purchase non availed itc

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 January 2017 Dear Experts
I have purchased the goods i.e.
100 Goods value
5 Vat
total bill amount 105/-
however since it was sales invoice therefore i am not eligible for ITC.
Pls tell me what will be the accounting entry if No ITC allowable,

Regards
Karan

Mithun Agarwal

Mithun Agarwal (Expert)
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10 January 2017 you can pass entry :
By Purchase A/c 105
To cash/party name A/c 105
(Note : If, you are not eligible for ITC then your vat amount will be your product cost )