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ACCOUNTING ENTIRES

TRILOCHAN (SENIOR ACCOUNTANT) (698 Points)

18 May 2009

HI,

PLS CONFIRM ME WHAT IS THE ACCOUNTING ENTRIES BY TAKING INTO CONSIDERATION OF INCOME TAX & VAT

ORIGINAL ASSET COST 110000

LESS : BUY BACK OLD 10000

NET PAYABLE RS. 100000

PLS TELL ME

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3 Replies

PiyushAgrawal (Chartered acooutant in practice) (575 Points)
Replied 18 May 2009

Originally posted by :TRILOCHAN
"	HI, PLS CONFIRM ME WHAT IS THE ACCOUNTING ENTRIES BY TAKING INTO CONSIDERATION OF INCOME TAX & VAT ORIGINAL ASSET COST 110000 LESS : BUY BACK OLD 10000 NET PAYABLE RS. 100000 PLS TELL ME	"

What r u want?? I think in a/cing entry there is no effect on VAT..

if i understand ur query properly,The entries are

First u should transfer old assets balance in Dispoal A/c.than after...

New Assets a/c Dr

To old assets disposal A/c

To Respective party/ Bank a/c

If there is loss than

Profit & loss a/c Dr

To Old assets disposal A/c*

*In case of profit reverse entry made.

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TRILOCHAN (SENIOR ACCOUNTANT) (698 Points)
Replied 18 May 2009

IF I MAKE THE ENTRIES NEW ASSET A/C DR RS 100000 TO PARTY 100000 WHAT IS THE PROBLEM

pulkit gupta (CA final student) (160 Points)
Replied 14 June 2009

Originally posted by :TRILOCHAN
"	HI, PLS CONFIRM ME WHAT IS THE ACCOUNTING ENTRIES BY TAKING INTO CONSIDERATION OF INCOME TAX & VAT ORIGINAL ASSET COST 110000 LESS : BUY BACK OLD 10000 NET PAYABLE RS. 100000 PLS TELL ME	"

Vendor A/c...................Dr. 10,000

To Old Asset A/c 10,000

New Asset A/c.........Dr. 1,00,000

Input Vat A/c.............Dr. 12,500

To Vendor A/c 1,12,500

For simplification i've taken gross amt-1,00,000 and so VAT wil be 12,500.

When there is sales Output VAt is credited. And diff between input and output is paid. However input of vat on capital goods is not availble in the first year itself, it will be on depriciation basis,as per VAT rules.