HELLO FRIENDS, PLS. TELL ME JOURNAL ENTRY OF THIS:
IN A PURCHASE BILL IT IS SHOWN
AMOUNT - SAY RS. 5000
- CASH DISCOUNT- 500
TAXABLE AMOUNT - 4500
VAT 4500 @ 10% - 450
SURCHARGE - 45
TOTAL 4995
PLS. HELP ME.
THANKS.
HELLO FRIENDS, PLS. TELL ME JOURNAL ENTRY OF THIS:
IN A PURCHASE BILL IT IS SHOWN
AMOUNT - SAY RS. 5000
- CASH DISCOUNT- 500
TAXABLE AMOUNT - 4500
VAT 4500 @ 10% - 450
SURCHARGE - 45
TOTAL 4995
PLS. HELP ME.
THANKS.
Purchases A/c Dr. 5000
Vat A/c Dr.450
Surcharge Dr.45
To Cash Discount A/c 500
To Party/Cash/Bank A/c 4995
Puchase A/c Dr. 5000/-
Vat A/c Dr. 450/-
Surcharge Dr; 45/-
To Dicount Cr.500/-
To Party Cr.4995/-
Agreed to the above!!!
agree with Bhusan
thanks chirag..
| Originally posted by : Bhushan Jaju | ||
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Purchases A/c Dr. 5000 Vat A/c Dr.450 Surcharge Dr.45 To Cash Discount A/c 500 To Party/Cash/Bank A/c 4995 |
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agreed with all
I feel CASH DISCOUNT need not be brought into book as per basic accounting concepts. Secondly it will pose a problem under VAT since purchase value is NOT PROPORTIONATE to the amount of input claimed
First u should right your vat amount.
vat should be charged on 5000 not on 4500. then the cash discount is given.. If you will provide vat on 4500, it means government lose vat on amount of 500, which is not admissible..
Then entry will be:
Purchase a/c Dr.
Vat a/c Dr.
To Cash
To Cash Discount
I disagree with Mr.Sourabh. DISCOUNT isa valid deduction under various VAT acts including CST. As such there is no problem with discount here.
give me a link of relevant page where cash discount is a valid ground for deduction..
Sir, there is a difference between trade discount and cash discount... and your provision will applicable on trade disoc*nt.. not on cash discount..
otherwise see me relevant page of this provision.. Just tell me section of relevant act.. i will see it..
don't take otherwise.. every person has its own view..
I agree with this entry
Manoj kumar upadhyay
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