| A LTD | |
| Purchase | 70000 |
| (700 KG*100) | |
| + VAT 5% | 3500 |
| 73500 | |
Suppose Company paid 65000 in full settlement
Pass entry for Purchase ,payment and Discount received
Will we issue Debit Note or Credit Note??
View answer
ENTRY FOR Purchase
PUR 5% LOCAL DR 70000
INPUT VAT 5% DR 3500
TO A LTD 73500
ENTRY FOR PAYMENT
A LTD DR 65000
TO BANK 65000
Discount Received=73500-65000=8500
This Discount is including Vat of 5%
DISCOUNT COMPUTATION
DISCOUNT 8095.2 (8500*100/105)
+ VAT 5% 404.8
TOTAL 8500.0
ENTRY
A LTD DR 8500
To Discount Received 8095.2
To Input Vat 5% 404.8
-ea-
Summary
Difference Between Last Question AND This Question
In Last Question,vat is extra and in This Question vat is inclusive
| Particulars | Last Question | This Question |
| DISCOUNT | 8500 | 8095.2 |
| + VAT 5% | 425 | 404.8 |
| TOTAL | 8925 | 8500.0 |