--%>

VAT entry

How to make a VAT entry in books including set off?

E

Expert

Verified

Purchases:

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

Sales:

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

Set Off:

         VAT Output: xxx
         VAT Input: xxx
         VAT Debit and Credit Account: xxx
         Transfer of Surplus - VAT Debit and Credit Account.

Payment:

         VAT Debit and Credit Account: xxx
         Cash in Bank: xxx
         Payment of VAT accounted for the month of: ______.

   Related Questions in Managerial Accounting

  • Q : Banker’s acceptance A security that

    A security that starts as an instrument similar to as check, in which a customer asks the bank to pay the designated amount to a payee in the future. The bank accepts the order, becoming responsible for payment, because the customer has the money to back the check, an

  • Q : Capital account An account used in a

    An account used in a partnership to record an individual partner's investment in the partnership plus the indi- vidual's share of any undistributed partnership income. In a corpo- ration, the equity sections have two parts: the contributed capital and retained earning

  • Q : Explain Managerial Cost Accounting

    Managerial Cost Accounting System: The organization and processes, whether automated or not, and whether portion of the general ledger or stand-alone, which accumulates and reports constant and trustworthy cost information and perform

  • Q : Define Cost Cost : The monetary value

    Cost: The monetary value of resources employed or liabilities or sacrificed incurred to attain an objective, such as to obtain or make a good or to execute an activity or service.

  • Q : Define Full Cost Full Cost : The sum of

    Full Cost: The sum of all costs needed by a cost object comprising the costs of activities executed by other entities in spite of of funding sources.

  • Q : Changing responsibilities of the

    Write a short note on the changing responsibilities of the management accountant?

  • Q : Bank reconciliation statement Explain

    Explain the term bank reconciliation statement?

  • Q : Illustrate the effect of tax on the

    The U.S. market for rice is illustrated below.   The world pric

  • Q : Explain Cost Assignment Cost Assignment

    Cost Assignment: A procedure which identifies costs with activities, outputs, or another cost objects. In a wide sense, costs can be assigned to activities, processes, products, organizational divisions, and services. There are three

  • Q : Describe fluctuating capital of partners

    Describe fluctuating capital of partners? Answer: Partner‘s capital is stated to be fluctuating if capital modifies with every transaction in the capital accou