I am Accounting for A Manuf.Unit Prop Ship firm is in Tax Audit.The firm has to pay VAT Qtrly.Please Clearfy should a Journal Entry passed after each QTR adjusting Vat Purchases Tax. April to June and July to Sep. Entry Passed : 30/6/2009 Vat on sale Dr, Vat on Purchases Cr, Vat Payable Cr.
Sales vat is under Sales Ac & Purchase vat is under Purchases Ac.Vat Ac is under Duties & Taxes Ac. Is the grouping correct.and the tally entry correct OR vat paid for 6 month should by Shown in Indirect expenses Please clear the Entry.
28 December 2009
I am giving you journal entries how to entry for VAT Accounting. 1.When Goods Purchase From registered dealer- Purchase a/c Dr. Inputvat a/c Dr To Cash / Creditors (Goods Purchased from………………) 2.When Goods Purchaser from Unregistered Dealer- Purchase a/c Dr. To Cash / Creditors (Goods Purchased from………………) 3.When Goods Sold to Registered dealer- Cash / Debtors a/c Dr. To Sales a/c To Outputvat (Goods Sold to …………………….) 4.When Goods Sold to Unregistered dealer- Cash / Debtors a/c Dr. To Sales a/c To Outputvat (Goods Sold to …………………….) 5.Adjustment of Input and Output Tax- Outputvat a/c Dr. Input Credit a/c Dr. (if Any) To Inputvat a/c To Cash / Bank (If any) (Adjustment of Inputvat and Outputvat totally adjust with input & output)
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