Total VAT Collectible Rs.100
Total VAT Collected Rs.61
VAT not booked Rs.39
Invoices for difference of Rs.39 have been already issued without VAT & now want to adjust difference of Rs.39.
Which account should be debited? VAT collected Rs.61 has been paid.
Please give the adjustment entry.
The appropriate entry is;
Debtors A/c ..dr 39
To VAT Payable 39
But this can be done only when the buyer is ready to pay the differential VAT Amount.
Alternatively, Fine or Tax Exp or Misc Exp Ledger can also be debited.
Thanks Rinky..
CAclubindia
