30 January 2013
Suppose I am selling a product @ Rs.10000/- to end customer(inclusive of VAT) but to secure the due we have a tie-up with a finance co which provides EMI facility to customers & provide us Rs.9500/- net after deducting his charges Rs.500/- Q-1.)At what amount sales to be booked Rs.10000/- or Rs.9500/- Q-2.)On which amount VAT is to be paid? Q-3.)Journal Entry for the same.....
30 January 2013
A1) sales should be booked at Rs.10,000 and journal entry for the same is- Debtor Dr. To Vat payable To Sales 2) Bank Dr. Finance charge Dr. TO Debtor A2) Vat shall be payable at Rs.10000
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