Purchase entry

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What if a Sundry Creditor (Registered Dealer) Bill sold taxable goods without Tax but the payment is already done by us through NEFT from Current Account ? How to pass such entries?
Replies (2)

You can't book input credit on such purchase, because you does not have any evidence that you have paid tax on the such purchase and no tax incidence had been charged on you.

you should make simple entry

Purchase A/c                          Dr. XXX

  To Sundry Creditors A/c                      XXX

Futher, if credited is ready to revise the said invoice and to bifurcate the basic and tax amount then you will be eligible to book input tax credit.

Pass the following entry :-

A) Dr......................Advance payment creditor A/c

    Cr........................Current Bank A/c

(Accounting in tally: Activate maintain bill by bill detail and select Advance under method of adjustment/Type of Reference) .

B) Dr............Purchase A/c 

   Cr............ Creditor A/c

(Select Against Reference for method of adjustment/Type of Reference and select the advance payment voucher made earlier. Supplier account will automatically be adjusted and will show outstanding payable for the balance amount)

 


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