A/c entries

Accounting Entries 959 views 4 replies

Renjith S Nair

Accountant

94 Points Posted on 22 August 2012

Dear All...

I am in Maldives...

***My question is Abt INPUT and OUTPUT tax entries.

Example is.

1. My in put Balance is 100/-

2. Out Put Balance is 150/-

*********** In the accounting Software Input tax is Under " Current Asset " and Out Put tax under "Current Liability".

My question is

A). whether this method is correct or not,..

B). If correct will u advice me all Accounting entries Up to Payment by cheque.

C). If Alternative is there or another best method is available,pls forward it with entries...

I am really struggling to find a good method....Please help..

Thanks in advance ....

Renjith S Nair.

Replies (4)

Mihir

Wealth Manager

5293 Points Posted on 22 August 2012

You can also use another method. Create two ledgers under the same group under liability. In any given day your liability will show the tax payable, so might as well enter both input and output tax under the same group so that you can see the setoff amount only.

CA. Subhash Dangi

Chartered Accountant

1784 Points Posted on 22 August 2012

U need to pass two entries :

1) for availing the input credit on monthly or any particular period

Input Tax A/c Dr............100

To Out put A/c ............. 100

(Being availment of input credit for the month or particular period)

2) for payment of tax

Output tax A/c Dr........ 50

To Bank A/c ............... 50

(Payment of Tax for the period........)

Renjith S Nair

Accountant

94 Points Posted on 22 August 2012

Originally posted by : CA. Subhash Dangi

U need to pass two entries :

1) for availing the input credit on monthly or any particular period

Input Tax A/c Dr............100

To Out put A/c ............. 100

(Being availment of input credit for the month or particular period)

2) for payment of tax

Output tax A/c Dr........ 50

To Bank A/c ............... 50

(Payment of Tax for the period........)