VAT-Entries
under VAT we have purchase credit and sales tax liability and net liability after taking purchase tax credit we will pay and this is every month exercise in tally we do. Now pls suggest me whether I should pass monthly journal entry for the net liability I pay. and any further entries I for my finalisation of accounts. Thanks for the members support so much.
No any further entry required......... as u say take a example:-
Your input tax credit- Rs. 25000/- and VAT liability Rs. 37500/-
then u required to pay Rs. 12500/-. IF you crate septare ledger for Input and output then u required follwing entry:-
Vat output Dr. 37500
To Vat Input 25000
To Bank 12500
Correct me if i m unable to undrestand ur querry
1)At the time of Purchase
Purchase 5% Dr 100000
Input Vat 5% Dr 5000
To Creditor 105000
2)At the time of Sale
Cash Dr 157500
To Sales 5% 150000
To Output Vat 5% 7500
3) Final Adjustment
Output Vat 5% Dr 7500
To Input Vat 5% 5000
To Vat Payable(CL) 2500
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