ACCOUNTANT
57 Points
Joined October 2010
Hai,
First create VAT Control A/c. and then transfer the month collection i.e., VAT Output to VAT Control A/c. and then transfer the month ITC taken amount i.e., VAT Input to VAT Control a/c. Finally VAT. Control a/c. will show debit or credit balance. If shown credit balance that will be a payable or shown debit balance that will be adjustable and carried forward to the next month. It should be closed in the month end date.
Closing balance of VAT Control a/c. is to be tallied with Sales tax return. if difference comes, that difference will be tallied when the payment entry made (On the date of payment).
Necessary entries:
1. VAT Control A/c. Dr. xxx
To VAT Input A/c. Cr xxx
(Being VAT. Input amount transferred)
2. VAT Output A/c. Dr. xxx
To VAT Control A/c. Cr xxx
(Being VAT. Output amount transferred)
3. VAT Control A/c. Dr. xxx
To Cash/ Bank A/c. Cr xxx
(Being payment made for the month of xxxxxxxx)
Pls. use it. It will helpful to verify sales tax return monthwise.