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Very difficult journal entry

akash (no) (160 Points)

03 July 2012  

suppose we have made a payment in advance for purchse amounting Rs 9,500 and Rs.500 discount as on 29 march 2012, and received goods as on 5 april 2012. now how will i pass journal entry in my books for 2011-12 and for 2012-2013 including vat. i want journal entries. please tell me according to matching principle and revenue recognition principal..... pls tell me journal entries with date.

 


 27 Replies

Rao Satish (Sr Manager-F & A) (65 Points)
Replied 04 July 2012

 

Entry to pass on 29.03.12

Dr Vendor a/c : 9500

Cr. Cash discount on Purchases : 500

Cr.Bank A/c : 9000

Entry to pass on 05.04.12

 

Purchases A/c  9136

Vat receiable A/c 364

To Vendor A/c     9500

(If 9500 is inclusive of vat @ 4%)

5 Like

mehul (ca final student) (83 Points)
Replied 04 July 2012

also check weather date of invoice is in 12-13

if invoice date is 11-12 then you have to book sale in transit and claim vat set off in the year 2011-12

otherwise vat set off will not allow by vat department.

 

1 Like

CA Karan Lodhi (CA and B.com(hons.)) (879 Points)
Replied 04 July 2012

Agreed with Mr. Rao Satish

Sarat Kumar Sahoo (Chartered Accountant) (389 Points)
Replied 04 July 2012

Both are correct

Harshal Fifadra (Chartered Accountant) (1489 Points)
Replied 04 July 2012

agree with rao satish .......

Deepak T Shetty (Chartered Accountant) (121 Points)
Replied 04 July 2012

Correct correct correct ! :)

Aarush (Delhi) (1566 Points)
Replied 04 July 2012

how discount received (500) can account for in 29th March 2011 when goods not received ? is this discount on payment ? in question payment to vendor is 9500 (10000-500) instead of 9000.

where is goods in transit account ? on what basis payment has made ? if on performa invoice basis than it should route through goods in transit.

29th March 2012

1. Goods in Transit Dr 10000

To Party                Cr 10000

2. Party A/c Dr 10000  OR 9500 (Check at own)

To Bank / Cash

05th April 2012

1. Purchase A/c Dr 10000 (Including Vat, can bifurcate in vat in seprate account)

To Goods in Transit 10000

 

05th April 2012

2. Party  A/c Dr 500

To Discount Recived 500

Lohith H P (Student) (45 Points)
Replied 06 July 2012

AGREE WITH MR. GAURAV

Vinod S. (Audit & Accounts Assistant)   (28 Points)
Replied 07 July 2012

Agree with Mr Gaurav

CA Manish Chainani (Business) (111 Points)
Replied 07 July 2012

HEY FRIENDS 

 

I have a doubt as in qusetion it is clearly said the payment is as advance and goods are not

tranferred fro supplier then how we will book it as stock in transit

CA Manish Chainani (Business) (111 Points)
Replied 07 July 2012

acco, to me 

 

in pre. year 

supplier   dr. 9000

     to bank            9000

 

then in cy

purchase  dr. 9500(Inclusive vat, u can bfrct) 

     to sup               9000

     to   cd                   500

Lohith H P (Student) (45 Points)
Replied 07 July 2012

in the prv. Year

 

Supplier A/c  Dr      9500

to Bank A/c             Cr                      9500

 

Current Year

 

Purchase A/ c Dr      9000

Vat A/c             Dr          500

to supplier A/c  Cr                               9500

Costing (Cost Accountant) (62 Points)
Replied 08 July 2012

Agree with Mr Gaurav

VIJAY KUMAR (PROP) (25 Points)
Replied 08 July 2012

Agree with Mr. Gaurav


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