Method of accounting followed : mercantile basis.
suppose :-
In Trading account Purchase and sales were declared inclusive of vat..
and vat payable for the month of march is 12500/-
My question is whether the provision should be created for the vat tax payable for the month of march and it should be shown seperately as expenses payable in liability side of the balance sheet or not??
suggest, what accounting treatment should be done?
should create provision for vat payable or no need to create provision??
CAclubindia
