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VAT Entry
How to make a VAT entry in books including setoff?


  
Total Answers and Comments: 1 Last Update: March 27, 2009     Asked by: sandeepkelkar 
  
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March 26, 2009 11:15:59   #1  
mcgozon Member Since: March 2009   Contribution: 1    

VAT Entry
1. Purchases
Accounts Payable xxx
VAT Input xxx
Cash in Bank xxx
Purchases recorded for the month.

2. Sales
Accounts Receivable xxx
Sales xxx
VAT Output xxx
Sales recorded for the month.

3. Set Off
VAT Output xxx
VAT Input xxx
VAT Debit & Credit Account xxx
Transfer of Surplus to VAT Debit & Credit Account.

4. Payment
VAT Debit & Credit Account xxx
Cash in Bank xxx
Payment of VAT reported for the month of ______.

 
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