Submitted Questions

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

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    mcgozon  

    • Member Since Mar-2009 | Mar 26th, 2009


    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 ______.
                 

    Jaleel

    • Oct 25th, 2017

    When set off
    Vat output a/c Dr
    Input vat a/c Cr
    Vat payable. Cr
    When payment made
    Vat payable a/c Dr
    Bank/Cash. Cr

    durgesh

    • Aug 22nd, 2016

    I need more help about VAT adjustment and entry whole year, How to adjust carry forward entry and and what should I do when there is a mis-match?