ACCOUNTING ENTIRES

What r u want?? I think in a/cing entry there is no effect on VAT..

if i understand ur query properly,The entries are

First u should transfer old assets balance in Dispoal A/c.than after...

New Assets a/c    Dr

    To old assets disposal A/c

    To Respective party/ Bank a/c

If there is loss than

Profit & loss a/c Dr

    To Old assets disposal A/c*

*In case of profit reverse entry made.

Vendor A/c...................Dr.  10,000

             To Old Asset A/c               10,000

New Asset A/c.........Dr.     1,00,000

Input Vat A/c.............Dr.       12,500

            To Vendor A/c                          1,12,500

For simplification i've taken gross amt-1,00,000 and so VAT wil be 12,500.

When there is sales Output VAt is credited. And diff between input and output is paid. However input of vat on capital goods is not availble in the first year itself, it will be on depriciation basis,as per VAT rules.