Wrongly accounted in sales..Urgent Sir!!!
This query is : Resolved
18 August 2010
Dear Experts,
One of the client first wrongly credited the sale of the fixed asset to the sales account.
Then in the same day itself he has reversed it. But the problem is while reversing he also included the VAT amount from the sales account. In short he also reversed including the VAT amount from the sales a/c. that means he has reversed extra amount than credited in the sales a/c. To that much amount the sales is lesser for that month. While materiality concept is considered it is not a big amount. Pls. tell me how to go about it.
With regards,
Rajesh.
One of the client first wrongly credited the sale of the fixed asset to the sales account.
Then in the same day itself he has reversed it. But the problem is while reversing he also included the VAT amount from the sales account. In short he also reversed including the VAT amount from the sales a/c. that means he has reversed extra amount than credited in the sales a/c. To that much amount the sales is lesser for that month. While materiality concept is considered it is not a big amount. Pls. tell me how to go about it.
With regards,
Rajesh.
18 August 2010
Original entry
Sundry Debtors Dr 110
To Sales Tax Payable 10
To Sales 100
Reversal entry(Wrongly included sales tax amount)
Sales Dr 110
To Fixed Asset 110
Rectification Entry
Fixed Asset Dr 10
To Sales 10
Sundry Debtors Dr 110
To Sales Tax Payable 10
To Sales 100
Reversal entry(Wrongly included sales tax amount)
Sales Dr 110
To Fixed Asset 110
Rectification Entry
Fixed Asset Dr 10
To Sales 10
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