1. What's the accounting treatment of transitional credit on opening stock on 1.4.2005?
1. What's the accounting treatment of transitional credit on opening stock on 1.4.2005?
| Originally posted by :Suvendu Laha | ||
| " | 1. What's the accounting treatment of transitional credit on opening stock on 1.4.2005? | " |
Transitional Credit available as on 31.03.2004 will be deducted from the purchase and the same will be shown as current asset to be adjusted from the VAT liability of 2005-06
Yup
The total amount of Vat credit availible on Opening stock has been accounted as follows,
Vat Credit Account (Current Account ) debited
To Purchase account cerdited
if the same stock on which vat credit claim has not been sale within 180 day counted from 01st april, then same credit revesal entry has to be pass on unsolved, this is becuse that much credit is not allowed in most of the state.
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