Accounting entry
This query is : Resolved
19 January 2017
Dear Sir,
What will be the accounting entries for the following transactions:-
1. Purchased goods worth 44100 and paid cst@2% on it.
2. Sold goods on credit to party for 90000 add vat @6%(90000+5400=95400)
3. Party deposited the vat amount of 5400 via challan to the department
Deducted 1200 as income tax and paid to IT department
Paid rest amount of ₹88200 via cheque
Kindly reply as soon as possible
What will be the accounting entries for the following transactions:-
1. Purchased goods worth 44100 and paid cst@2% on it.
2. Sold goods on credit to party for 90000 add vat @6%(90000+5400=95400)
3. Party deposited the vat amount of 5400 via challan to the department
Deducted 1200 as income tax and paid to IT department
Paid rest amount of ₹88200 via cheque
Kindly reply as soon as possible
19 January 2017
Hello,
Answer is as follow:
1. CST is your expense hence you can club it in to purchase.
- Purchase A/c Dr... 44982
to Party Ac..............44982
2. For Sales - If party had deducted 1200 as TDS then he had paid Rs. 88800 and not 88200
- Party Account Dr........94,200
TDS Receivable Dr....1,200
TO Sales Ac..................90000
To VAT Payable.............5400
3. VAT Deposited by Party.
VAT Payable Dr..........5400
To Party Acc.............5400
Thanks...
Answer is as follow:
1. CST is your expense hence you can club it in to purchase.
- Purchase A/c Dr... 44982
to Party Ac..............44982
2. For Sales - If party had deducted 1200 as TDS then he had paid Rs. 88800 and not 88200
- Party Account Dr........94,200
TDS Receivable Dr....1,200
TO Sales Ac..................90000
To VAT Payable.............5400
3. VAT Deposited by Party.
VAT Payable Dr..........5400
To Party Acc.............5400
Thanks...
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