Dear Sir,,
I want to know that what kind of accounts is input vat , output vat etc. i.e. personal real or nominal accounts???? i will be greatful if anybody reply with explanation.
Personal Accounts:
Accounts recording transactions with a person or group of persons are known as personal accounts. These accounts are necessary, in particular,to record credit transactions.
Personal accounts are of the following types:
(a) Natural persons: An account recording transactions with an individual
human being is termed as a natural persons’ personal account. eg., Kamal’s account,
Mala’s account, Sharma’s accounts. Both males and females are included in it
(b) Artificial or legal persons: An account recording financial transactions
with an artificial person created by law or otherwise is termed as an artificial person,
personal account, e.g. Firms’ accounts, limited companies’ accounts, educational
institutions’ accounts, Co-operative society account.
(c) Groups/Representative personal Accounts: An account indirectly
representing a person or persons is known as representative personal account. When
accounts are of a similar nature and their number is large, it is better tot group them
under one head and open a representative personal accounts. e.g., prepaid insurance,
outstanding salaries, rent, wages etc.
When a person starts a business, he is known as proprietor. This proprietor is
represented by capital account for all that he invests in business and by drawings
accounts for all that which he withdraws from business. So, capital accounts and
drawings account are also personal accounts.
The rule for personal accounts is: Debit the receiver
Credit the giver
Real Accounts
Accounts relating to properties or assets are known as ‘Real Accounts’, A
separate account is maintained for each asset e.g., Cash Machinery, Building, etc.,
Real accounts can be further classified into tangible and intangible.
(a) Tangible Real Accounts: These accounts represent assets and properties
which can be seen, touched, felt, measured, purchased and sold. e.g. Machinery
account Cash account, Furniture account, stock account etc.
(b) Intangible Real Accounts: These accounts represent assets and properties
which cannot be seen, touched or felt but they can be measured in terms of money.
e.g., Goodwill accounts, patents account, Trademarks account, Copyrights account,etc.
The rule for Real accounts is:
Debit what comes in
Credit what goes out
Nominal Accounts
Accounts relating to income, revenue, gain expenses and losses are termed as
nominal accounts. These accounts are also known as fictitious accounts as they do not
represent any tangible asset. A separate account is maintained for each head or
expense or loss and gain or income.
Wages account, Rent account Commission account, Interest received account are some examples of nominal account
The rule for Nominal accounts is:
Debit all expenses and losses
Credit all incomes and gains
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dear kamlesh ji
input vat and output vat is personal accounts because govt. accounts this accounts show in the balance sheet, balance sheet two account show persional and real and real account is 1.fixed assets 2.investment 3. stock a/c 4.cash a/c, other accounts show in the balance sheet personal accounts 1. capital accounts 2.reserve & serpluse 3. loan a/c 4. current liabilities , investment , current assets (bank , loan & advances, deposite, debtors,) and miscellaneous fictitious assets show in the assets side
(dr)input vat - output(cr) = vat refund(dr), input vat excess show in the current assets side refund from govt.
(cr) out put vat- inputvat(dr) = vat payable(cr), output vat excess show in current liabilites payable to govt.
nominal account show in trading & p&l accounts 1.purchase 2.sales 3.direct expenses 4.direct income 5.indirect expenses 6.indirect income are nominal accounts
trading account show real account is opening stock and closing stock
Note:-investment is personal use than personal accounts like lic , nsc, and investment for bussiness purpose than real accounts for example nsc for security.
Note:- purchase and sale in 12th class book show real accounts and ca class show nominal accounts
Note:- sale tax show in the P&L no refundable than is nominal accounts under composition secheme (composition fee paid) indirect expenses
dear kamlesh ji
input vat and output vat is personal accounts because govt. accounts this accounts show in the balance sheet, balance sheet two account show persional and real and real account is 1.fixed assets 2.investment 3. stock a/c 4.cash a/c, other accounts show in the balance sheet personal accounts 1. capital accounts 2.reserve & serpluse 3. loan a/c 4. current liabilities , investment , current assets (bank , loan & advances, deposite, debtors,) and miscellaneous fictitious assets show in the assets side
(dr)input vat - output(cr) = vat refund(dr), input vat excess show in the current assets side refund from govt.
(cr) out put vat- inputvat(dr) = vat payable(cr), output vat excess show in current liabilites payable to govt.
nominal account show in trading & p&l accounts 1.purchase 2.sales 3.direct expenses 4.direct income 5.indirect expenses 6.indirect income are nominal accounts
trading account show real account is opening stock and closing stock
Note:-investment is personal use than personal accounts like lic , nsc, and investment for bussiness purpose than real accounts for example nsc for security.
Note:- purchase and sale in 12th class book show real accounts and ca class show nominal accounts
Note:- sale tax show in the P&L no refundable than is nominal accounts under composition secheme (composition fee paid) indirect expenses
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Dear Sir,
Input Vat and output vat are real accounts is nature.
Input VAT is treated as an asset and Output VAT is treated as liability. This liability can be set off with the Asset and remit the remaining Output VAT .(i.e, Output VAT can be set off with the input VAT and after setting off, if anything remains in Output, this has to be remitted to govt)
Total likes : 1 times
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