Entry for refund claim under vat/ excise

Dear Experts

if Delhi based traders( registered under excise) "A" sells goods Rs 1000 @ 5 % vat   to "B"  in Delhi who is exporting the goods and claim refund vat and excise from deptt.  which of below journal entry is correct in the books of B.

for purchase the goods in books of B

Purchase                    Dr                              1000

Excise Duty                  Dr                              123.6o

vat   input 5%                Dr                               56.18

To A                                                                                       1179.78

for refund

 Deptt ( under Current Assets)                      Dr           56.18

  To VAt                                                                                                       56.18

                                                                  OR

 

Purchase                                                Dr                        1123.60

vat                                                             DR                         56.18

To A                                                                                                                   1179.78

 

for refund

same as above

PL suggest ASAP

 

Thanks

 

 

 

 

 

 

 

 

 

 

 

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