Purchase & sale with same party

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 September 2013 I HAVE PURCHASED GOODS FROM A PARTY OF RS10000000/ (ITEMS NAME ANGLE) AND PAID VAT @5%.AFTER SOME DAYS I SOLD GOODS TO SAME PARTY OF RS 15000000/(ITEMS NAME CHANNEL)& Charged vat@5%.Shall I HAVE TO MAKE PAYMENT BY BANK TO AVAIL INPUT TAX CREDIT.OR CAN I MAKE ADJUSTMENT ENTRY AND SET OFF MUTUAL AMOUNT BY ADJUSTMENT ENTRY. WILL THERE BE ANY PROBLEM FROM SALES TAX AUTHORITIES.WHAT WII BE BOOK ADJUSTMENT ENTRY & HOW SET OFF WILL BE MADE. WHAT WILL BE ENTRY & NARRATION. I HAVE PURCHASED AND SOLD DIFFERENT ITEMS TO SAME PARTY.

Mohammad Avesh

Mohammad Avesh (Expert)
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01 October 2013 you may make simple entry in your books of sale and purchase like other debtors, creditors, with in period or at the time of finalization of books you may creat adjustment entry through journal voucher.
narrration may be write down as you think better it's not a legal issue.