Confusing journal about purchase + advance + goods in transit + vat

A/c entries 741 views 2 replies

Problem_Please answer

As on 29.03.2012 (F.Y 2011-12) Rs 6000 paid as advance for purchase of goods from Mr X. Received cash Discount Rs.500 for advance payment. Whereas actual Purchase price was 10000. But invoice date was 30.03.2012. Goods was actually received as on 05.04.2012, because goods were in transit. I have paid excess amt of Rs 3500 when goods received.

Now how will i pass journal entry in my books for 2011-12 and for 2012-2013 including DISCOUNT, VAT  @ 4%, GOODS IN TRANSIT.

I want journal entries. please tell me according to matching principle and revenue recognition principal..... pls tell me journal entries with date.

Replies (2)
On 29.03.12
Party A/c .... Dr 6000
To cash 6000
on 05.04.12
Purchases A/c .... Dr 10000
To cash 3500
To party 6000
To discount 500

on 29.03.2012

party a/c...........Dr.      6000

       To Cash A/c...........6000

 

 

on 30.03.2012

stock/goods in transit A/c.........Dr.     10000

       To Party a/c........................9500

       To Cash discount................500

 

 

On 05.04.2012

purchase A/c.................Dr. 9615

VAT @ 4% A/C................Dr.385

Party A/c ......................Dr.3500

       To Cash A/C.......................3500

       To Stock/goods in transit......10000 


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