Octroi

IS OCTROI Amount credited to sales or shown seperately under OCTROI AC?  eg gross Sale Price Rs 100, octroiRs 10 , VAt 5 % thereon Rs 5.5. which is the correct entry ?-    

1) party Ac dr    115.5

       To sales                 100

        To  5 % VAt             5.5

         To octroi                  10

     OR

2) party Ac Dr    115.5
          To sales         110

          To 5% vat          5.5