If a company have Purchases 150000(including 10000 for input vat) and Sales Rs. 200000.(including Output Vat rs. 15000) and Company have paid Vat rs. 10000-15000= 5000.
in the above case which amount debit in as Sales tax expenses and Sales a/c and Purchases a/c and much amount show in balance sheet if vat not paid Regards Mahesh Siradhana
12 December 2009
Purchase A/c Dr. 150000 Input VAT A/c Dr. 10000 To Creditors A/c 160000 Debitors A/c Dr. 215000 To Sales A/c 200000 Output VAT A/c 15000
Purchase & Sales relates to P&L & VAT has to be taken into your B/S So you have Collected Rs.5000/- Add.after the Computation/settlement..of VAT INPUT & OUTPUT... so you have to deposit in Bank Rs.5000/- by Challan. Setoff Out Put VAT A/c Dr. 15000 To Input VAT A/c 10000 cash or Bank A/c 5000
12 December 2009
Purchase A/c Dr. 150000 To Creditors A/c 150000 Debitors A/c Dr. 200000 To Sales A/c 200000 input vat a/c. 10000 vat a/c. 5000 to Output VAT A/c 15000 5000 is go on profit & loss A/c.
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