28 December 2009
hi i hve a doubt in accounting , wat amt to be taken for VAT input credit? one of my client has done the following error , how to recity it? Example: assessable value - Rs100 VAT 4 %- Rs 4 (instead of Rs.4 they have collected Rs.12 from thier customer) the totalled billed amount(including VAT), which is accounted is Rs. 114
wat entry should we pass now & wat is the input credit to be taken?..
28 December 2009
You are saying the entry journalized is Bank a/c.....dr 114 To vat a/c...dr 12 To cust 102
You should reverse the whole entry as: cust......dr 102 vat a/c...dr 12 To Bank a/c.... 114
and then journalize the new one as Actual entry: Bank a/c.....dr 104 To vat payable 4 To Customer 100
As the case tells that u have recovered Rs 12 instead of Rs 4.then your liability will be Rs 12 as vat payable and you can take the input as usual. but the customer who has paid you the rs 12 vat will take the input credit of Rs 12 instead of rs 4
CAclubindia
