QUESTION 1
Normally on Sales,Vat is also charged
Suppose Sales made by A to B of 100000+5% Vat
Whether 1% TCS to be collected on 100000 or 105000?
View answer
TCS is applicable on Totam amount collected i.e. 105000
TCS =1% of 105000=1050
QUESTION 1 Continued
What is the journal entry in above case?
View answer
Entry for Sales
10-Jun
Party Dr 106050
To Sales 100000
To Output Vat 5% 5000
To TCS Payable 1050
07-Jul
TCS Payable Dr 1000
To Bank 1000
16-Jul
Amount Received
Bank Dr 106050
To Party 106050
QUESTION 2
Suppose A makes Sale of 100000+ 5% Vat to B on 10 June
Amount received in Advance by A from B on 25 April
Pass Entry
View answer
25-Apr
Amount Received
Bank Dr 106050
To Party 105000
To TCS Receivable 1050
07-May
TCS Payable Dr 1050
To Bank 1050
10-Jun
Party Dr 105000
To Sales 100000
To Output Vat 5% 5000
Case 3
Suppose A makes Sale of 100000 + 5% VAT to B on 10 June
30% Amount received in Advance by A from B on 25 April
Balance Received on 24 August
View answer
25-Apr
Amount Received
Bank Dr 31815
To Party 31500
To TCS Receivable 315
07-May
TCS Payable Dr 1315
To Bank 1315
10-Jun
Party Dr 105735
To Sales 100000
To Output Vat 5% 5000
To TCS Receivable 735
07-Jul
TCS Payable Dr 735
To Bank 735
Bank Dr 74235
To Party 74235