In my question, I would like to know about accounting treatment for an expense where VAT is paid in advance and the expense is payable on a recurring basis. i will explain the scenario,-
my office rent payable for the year is 36000+1800 VAT =37800, we have to pay rent in 3 payments of 12000. as the first payment we paid 13800(12000 1st payment + 1800 total VAT ), now I want to claim this VAT with the current quarterly payment ( January to March), but 2nd payment will become due on April and third payment will become due on August.
I am using TALLY, I have to post the full amount of rent to claim this full amount of VAT, but the full amount of 36000 will show in my January expense. i want to treat this expense as recurring basis, and I want to claim VAT in current period. how is it possible ? what are the journal entries
CAclubindia
