Journal Entry

This query is : Resolved

Guest

Guest (Querist)

20 June 2011 Today i was doing a company's tax audit and i noticed a journal entry which was as follows:-
VAT Tax Payable A/c Dr.
To Income a/c

So i asked my senior about the same and he replied that it happens when people want to save or get rid of tax liability..

Please suggest whether the accountant was correct in passing such a journal entry..
Thanx in advance!

ABHISEK TOSNIWAL

ABHISEK TOSNIWAL (Expert)
Follow

21 June 2011 Dear Disha,

No its not a correct entry which has been passed by the said accountant. He has transfered his payables to his income account which is a wrong accounting practice totally.

Regards,

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

George Innocent

SUBHASH SAHA

Narendra

Krishnaveni karur

KRK

Subscribe Now

Journal Entry

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Accountant

GST CONSULTANCY

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

CA Final