Accounting entry -accounts

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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 "Tax Paid" 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 (2)

This method is correct......Mr. Nair

 

The entry to be passed is :

Current liability (output Vat) Dr       Rs 150

    To Current assets (input Vat)                    Rs 100

     To Bank ( net payable-Vat)                        Rs   50

By passing this entry all your liabilty will be knocked-off.

Regards,

Rahulsmiley

ya agree with Rahul

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