Journal entry

Page no : 2

sudhir munjal (Student) (53 Points)
Replied 11 December 2012

purchase a/c (dr.)-4500, Vat(dr.)-450, Surcharge(dr.)-45, To cash-4995. . . Purchase shown net of discount.. By doing ths u wil nt be getng problem at ur sales tax asesment. agree wid mr.verma

Upgrade to CAclubindia Pro. Subscribe Now!

sudhir munjal (Student) (53 Points)
Replied 11 December 2012

purchase a/c (dr.)-4500, Vat(dr.)-450, Surcharge(dr.)-45, To cash-4995. . . Purchase shown net of discount.. By doing ths u wil nt be getng problem at ur sales tax asesment. agree wid mr. verma

CA Kumar Mukesh (CA CMA FINAL and Advance Excel Trainer) (6881 Points)
Replied 11 December 2012

Originally posted by : M K U VARMA
	I feel CASH DISCOUNT need not be brought into book as per basic accounting concepts. Secondly it will pose a problem under VAT since purchase value is NOT PROPORTIONATE to the amount of input claimed	I