ACCOUNTING ENTIRES

1615 views 3 replies

HI,

PLS CONFIRM ME WHAT IS THE ACCOUNTING ENTRIES BY TAKING INTO CONSIDERATION OF INCOME TAX & VAT

 ORIGINAL ASSET COST 110000

LESS : BUY BACK OLD 10000

NET PAYABLE RS. 100000

PLS TELL ME

Replies (3)
Originally posted by :TRILOCHAN
" HI,
PLS CONFIRM ME WHAT IS THE ACCOUNTING ENTRIES BY TAKING INTO CONSIDERATION OF INCOME TAX & VAT
 ORIGINAL ASSET COST 110000
LESS : BUY BACK OLD 10000
NET PAYABLE RS. 100000
PLS TELL ME
"


 

What r u want?? I think in a/cing entry there is no effect on VAT..

if i understand ur query properly,The entries are

First u should transfer old assets balance in Dispoal A/c.than after...

New Assets a/c    Dr

    To old assets disposal A/c

    To Respective party/ Bank a/c

 

If there is loss than

Profit & loss a/c Dr

    To Old assets disposal A/c*

*In case of profit reverse entry made.

IF I MAKE THE ENTRIES NEW ASSET A/C DR RS 100000 TO PARTY 100000 WHAT IS THE PROBLEM
Originally posted by :TRILOCHAN
" HI,
PLS CONFIRM ME WHAT IS THE ACCOUNTING ENTRIES BY TAKING INTO CONSIDERATION OF INCOME TAX & VAT
 ORIGINAL ASSET COST 110000
LESS : BUY BACK OLD 10000
NET PAYABLE RS. 100000
PLS TELL ME
"


 

Vendor A/c...................Dr.  10,000

             To Old Asset A/c               10,000

 

New Asset A/c.........Dr.     1,00,000

Input Vat A/c.............Dr.       12,500

            To Vendor A/c                          1,12,500

For simplification i've taken gross amt-1,00,000 and so VAT wil be 12,500.

When there is sales Output VAt is credited. And diff between input and output is paid. However input of vat on capital goods is not availble in the first year itself, it will be on depriciation basis,as per VAT rules.


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