15 January 2014
Dear sir, my organisation purchase raw material of rs 150000 gross of which vat is 4500 and at the time of payment we pay only 145000 bal. rs. 5000/- is not paid . But entry was passed as:- Raw Material a/c Dr. 145500 Input Vat a/c Dr. 4500 To Party a/c 145000 To Misc . income 5000 I think above entry passed is wrong.There should not be misc income. what should i do for adjustment of rs. 5000/- which will not effect my other account compliance.
15 January 2014
Misc. income A/c Dr - Rs 5000 to Creditors A/c Cr - Rs 5000
But normally this should not be done because , Journal entry should not be passed in the creditors / debtors account. These are only a Reconciliation account which has to get it routed through Sub ledgers.
CAclubindia
