Respected Sir,
The Cost Price of a product is Rs. 100 and VAT is 5% , please reply me that what will be the Journal entry for Purchase and if 50% goods return then the Purchase Return entry including VAT?
Respected Sir,
The Cost Price of a product is Rs. 100 and VAT is 5% , please reply me that what will be the Journal entry for Purchase and if 50% goods return then the Purchase Return entry including VAT?
Dear Sir,
The entry would be:-
Purchase A/c Dr...... 100
VAT input @ 5% A/c Dr.... 5
To Sundry Creditor A/c..... 105
you may reverse the entry in Purchase Return... or route it through the Purchase Return A/c...
Best Regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com
Dear Lovely Arora,
Do u mean reversal entry should be as follows,
Creditor A/c...............Dr
To VAT Input A/c
To Purchase(or Purchase Return ) A/c
(to the extent of goods returned)
Dear Rajesh,
yes...
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