Journal entry and solution

This query is : Resolved

jitu (Querist)
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15 January 2014 Dear sir,
my organisation purchase raw material of rs 150000 gross of which vat is 4500 and at the time of payment we pay only 145000 bal. rs. 5000/- is not paid . But entry was passed as:- Raw Material a/c Dr. 145500
Input Vat a/c Dr. 4500
To Party a/c 145000
To Misc . income 5000
I think above entry passed is wrong.There should not be misc income.
what should i do for adjustment of rs. 5000/- which will not effect my other account compliance.

jegannath G

jegannath G (Expert)
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15 January 2014 Misc. income A/c Dr - Rs 5000
to Creditors A/c Cr - Rs 5000

But normally this should not be done because , Journal entry should not be passed in the creditors / debtors account. These are only a Reconciliation account which has to get it routed through Sub ledgers.