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Account adjustment

Mohammed Shahid Rahman (Partner) (143 Points)

01 February 2017

Hello, In the year 15-16 my input vat was greater than output vat. It was approx 15000/- i guess.

I forgot to mention this in the balance sheet of 15-16 and return was submitted.

How can this be rectified in year 16-17. What will the account entries and under wht head should it come in Tally. I am new to accounts. Plz help. Regards

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4 Replies

Praveen Kachhawa (Financial Accountant) (225 Points)
Replied 02 February 2017

I think your output vat is standing in liabilities or input at assets side.

follow these step

1. Open a ledger "VAT 15-16"

2 Pass journal entries ( 1 apr. 2016 )

(A). VAT 15-16 dr.

To Input vat

input vat of previous year trf.

(B). Output Vat Dr.

To VAT 15-16

output vat of previous year trf.

now the "vat 15-16" ledger reflect net effect of VAT balance.

Praveen Kachhawa (Financial Accountant) (225 Points)
Replied 02 February 2017

I think your output vat is standing in liabilities or input at assets side.

follow these step

1. Open a ledger "VAT 15-16"

2 Pass journal entries ( 1 apr. 2016 )

(A). VAT 15-16 dr.

To Input vat

input vat of previous year trf.

(B). Output Vat Dr.

To VAT 15-16

output vat of previous year trf.

now the "vat 15-16" ledger reflect net effect of VAT balance.

Praveen Kachhawa (Financial Accountant) (225 Points)
Replied 02 February 2017

I think your output vat is standing in liabilities or input at assets side.

follow these step

1. Open a ledger "VAT 15-16"

2 Pass journal entries ( 1 apr. 2016 )

(A). VAT 15-16 dr.

To Input vat

input vat of previous year trf.

(B). Output Vat Dr.

To VAT 15-16

output vat of previous year trf.

now the "vat 15-16" ledger reflect net effect of VAT balance.

Mohammed Shahid Rahman (Partner) (143 Points)
Replied 02 February 2017

Thanks for the reply Praveen.

I would like to know VAT_15_16 will come under which head in tally? Indirect Income, Indirect Expense ??

I'll explain again with example.

In yr 15-16 i purchased something and paid vat of 15000/- . In the same year i sold something and i got vat of 1000/-

When the returned was filed i did not mention that i have to carry fwd (15000-1000=14000) nxt year. Somehow I made a mistake. My 14000 is with the government. As return for 15-16 has already been filed, i cannot change the balance sheet.

I'll some how have to show 14000 in this years balance sheet.

Regards