Purchases dr
Vat input dr
To creditors Cr
Debtors dr
To sales Cr
To Vat output Cr
Are the above entries correct and are creditors and debtors are shown in balance sheet including VAT and how VAt is shown and accounted please anyone explain
3 Replies
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 28 July 2016
- Entries are correct
- Creditors & debtors balance include VAT portion too
- Input VAT is grouped under other current assets
- Output VAT under duties & taxes
saranraj thangaraj
(articled assistent)
(121 Points)
Replied 28 July 2016
adding to the above comment which given by poornima,
1. when input tax is adjusted against output tax, just transfer the same to output tax at the end of particular month.
2. if anything paid in excess of adjustment against input tax or when the input tax is NIL then entry is
1. when input tax is adjusted against output tax, just transfer the same to output tax at the end of particular month.
2. if anything paid in excess of adjustment against input tax or when the input tax is NIL then entry is
saranraj thangaraj
(articled assistent)
(121 Points)
Replied 28 July 2016
continue....
output tax a/c Dr
To bank or cash a/c
output tax a/c Dr
To bank or cash a/c
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