Example 1

A LTD
Purchase 40000
Vat 5% 2000
  42000

 

 XLTD
Sale 60000
vat 5% 3000
  63000

Pass Entries for Purchase and Sales

-a-

Purchase 5% local Dr  40000

Input Vat 5%                  2000

      To A Ltd                              42000

 

 

X ltd Dr    63000

     To Sales 5% local        60000

     To Output Vat 5%       3000

-ea-

 

Example 2

B LTD
Purchase 80000
Vat 12.5% 10000
  90000

 

Y LTD
Sale 60000
Vat 12.5% 7500
  67500

Pass Entries for Purchase and Sales

-a-

Purchase 12.5% local Dr  80000

Input Vat 12.5%                  10000

      To B Ltd                              90000

 

 

Y ltd Dr    67500

     To Sales 12.5% local        60000

     To Output Vat 12.5%       7500

-ea-

 

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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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