What is the entry for po includes vat,cts

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 October 2012 Hi Experts,

purchase order includes VAT 4%,CST 2%.
PO QTY:10 PRICE:10

What is the entry for this?

thanks
sadasiva

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

21 October 2012 No entry is passed for issuing a Purchase Order as it does not have any accounting implication.

Querist : Anonymous

Querist : Anonymous (Querist)

21 October 2012 sir sorry ,i forgot to say where the accounting entry starts from and what willbe the entry for the above cases...,

What is the entry when Goods Receipt and Invoice verification.

Thanks

Querist : Anonymous

Querist : Anonymous (Querist)

21 October 2012 Let comform is the below entries are correct or not ????

Goods receipt -

INVENTORY A/C DR 100
GR/IR A/C CR 100

INVOICE VERIFICATION-VAT2%
GR/IR A/C DR 100
VAT A/C DR 4
VENDOR A/C CR 104

INVOICE VERIFICATION-CST2%
GR/IR A/C DR 100
VAT A/C DR 2
VENDOR A/C CR 102

If the entries are not correct please notifyme..

thanks

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

20 November 2012 The first 2 entries are correct.

In case of CST, entry will be:

GRIR A/c Dr. 100
Raw Material A/c Dr 2
To Vendor 102

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