Vat entry & accounting treatment

MAHENDRA KANTILAL TITA (Account Executive) (131 Points)

17 July 2012  

Hi, Its Mahendra,

I want to know that :

Question 1 :

One of my client has made sale of Rs.10,000/- , Net 12.50% is Rs.8,888/- and Vat 12.50% is Rs.1,111/-.

Now the party has deducted vat amount and only paid Rs.8,888/-. so how to make an entry and what will be vat payable my party to government.

 

Question 2 :

Another is my client has purchase goods Rs.50000/- and when goods received there is a damaged in goods nearly amount to Rs.20,000/- goods are taxable @ 12.50% vat. , my client has paid only Rs.30,000/-. so what will be the entry and what will be vat adjustment.

 

Please reply.