accounting enteries for vat
This query is : Resolved
07 July 2010
Sir,
ours is ahospital. and has a pharmacy connected to it. every month we pay Vat on the following basis: Vat on Sales minus Vat on purchases , say it is XXX. I pass an entry as follows: Vat a/c Dr. XXX
To bank a/c XXX
For purchases the entry: purchases a/c Dr.
To bank (amt including VAT)
and for sales it is Bank a/c Dr.
to Sales A/c (amt including vat) is this right? if wrong please give the correct entries. i hv read somewhere that vat input a/c, vat output a/c has to be opened. how is this done. or is it ok with what i am doing.
ours is ahospital. and has a pharmacy connected to it. every month we pay Vat on the following basis: Vat on Sales minus Vat on purchases , say it is XXX. I pass an entry as follows: Vat a/c Dr. XXX
To bank a/c XXX
For purchases the entry: purchases a/c Dr.
To bank (amt including VAT)
and for sales it is Bank a/c Dr.
to Sales A/c (amt including vat) is this right? if wrong please give the correct entries. i hv read somewhere that vat input a/c, vat output a/c has to be opened. how is this done. or is it ok with what i am doing.
07 July 2010
no u r doing wrong
open a vat input a/c- in Current Assets(Duties & Taxes)
at purchase
Purchase Dr
Vat inputDr
Cash/Bank/Creditor Cr
Open a Vat Output account - in current liab (Duties & Taxes)
At sales
Cash/Bank/Debtor Dr
Sales Cr
Vat Output Cr
At the end of Tax Payment period Pass this entry
Vat output Dr.(with amount o/s in this a/c)
Vat Payable Cr
&
Vat Payable Dr(with amount o/s in this a/c)
Vat Input Cr
& the net amount in Vat Payable wil be paid
Vat Payable Dr
Bank/Cash Cr
open a vat input a/c- in Current Assets(Duties & Taxes)
at purchase
Purchase Dr
Vat inputDr
Cash/Bank/Creditor Cr
Open a Vat Output account - in current liab (Duties & Taxes)
At sales
Cash/Bank/Debtor Dr
Sales Cr
Vat Output Cr
At the end of Tax Payment period Pass this entry
Vat output Dr.(with amount o/s in this a/c)
Vat Payable Cr
&
Vat Payable Dr(with amount o/s in this a/c)
Vat Input Cr
& the net amount in Vat Payable wil be paid
Vat Payable Dr
Bank/Cash Cr
Message likes :
1 times
07 July 2010
AGREE WITH AKHIL JI
BUT AT THE END OF THE MONTH YOU CAN PASS THE ENTRY BELOW:
VAT OUTPUT ----------DR
TO, VAT INPUT
TO, BANK(BALANCE)
BUT AT THE END OF THE MONTH YOU CAN PASS THE ENTRY BELOW:
VAT OUTPUT ----------DR
TO, VAT INPUT
TO, BANK(BALANCE)
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CAPITAL GAIN BASE ON NOTIFICATION
- Taxable or Tax exempt
- TDS Deducted AY-2013-14 Not Reflected in 26as
- Demand Outstanding AY 2013-14 TDS Deducted not shown in 26as
- ADVANCE PAYMENT OF ADVOCATE
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Capital gain on sale and purchase of plot
- Eway bill generation from place other than registeted
- Goods sold but invoice not issued
- GST rate and HSN code for sale of racing horses
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
