can any1 plz send me test paper 3/2008 i have to submit my answer papers...it would b realt great if some1 send me solutions on my email id :- dipeshvirani84 @ gmail.com
dipesh
(HR-ADMIN)
(22 Points)
Replied 31 August 2011
can any1 plz send me test paper 3/2008 i have to submit my answer papers...it would b realt great if some1 send me solutions on my email id :- dipeshvirani84 @ gmail.com
Bhaskar Unnikrishnan CPA CMA
(Accounts / Administration)
(414 Points)
Replied 04 September 2011
A good article to "Hot to treat VAT in Books of Accounts...
surender
(Manager Accounts)
(149 Points)
Replied 05 September 2011
Purchase 4%.....Dr. 100000
Input Vat 4%-----Dr. 4000
TO Discount A/C 10400
TO Vendor A/C.... 93600
Usually when a company purchases inventory the seller will state the credit terms. Sometimes the seller of the inventory must offer a discount if the amount owed is paid before the due date.
To record the journal entry for payment of the amount due within the discount period, we must first calculate the discount. The discount is recorded by decreasing the merchandise inventory account. So the journal entry to record this transaction would be a debit to accounts payable to reduce the full amount of the amount owed. A credit to merchandise inventory to reduce the inventory by the amount of the discount and a credit to cash for the amount paid – the full amount (or gross) minus the discount.
Instead, let’s assume that the bill was not paid during the discount period. This journal entry would not record a discount. Instead, the company would simply debit accounts payable to decrease the amount owed and credit cash.
Keval
(Consultant)
(120 Points)
Replied 05 September 2011
Extract of AS-2 para 7
"The costs of purchase consist of the purchase price including duties
and taxes (other than those subsequently recoverable by the enterprise from
the taxing authorities), freight inwards and other expenditure directly
attributable to the acquisition. Trade discounts, rebates, duty drawbacks and
other similar items are deducted in determining the costs of purchase."
So far i think the stock would be of90000 purchase cost - discount that is (10000-10%) and vat refundable would be3600 i.e. (4000-10%) and hence the stock would be of90000 as the purchase cost itself will eliminate the discount.
Warm Regards,
KRS
CAclubindia
