| A LTD | |
| Sales | 300000 |
| (1500 KG*200) | |
| + VAT 5% | 15000 |
| 315000 | |
Suppose Company paid 300000 in full settlement
Pass entry for Sales ,payment and Discount received
Will we issue Debit Note or Credit Note??
View answer
ENTRY FOR Sales
A LTD 315000
TO SALES 5% LOCAL 300000
TO Output Vat 5% 15000
Bank Dr 300000
To A LTD 300000
Discount Received=315000-30000=15000
This is inclusive of vat
DISCOUNT COMPUTATION
DISCOUNT 14285.7 (1500*100/105)
+ VAT 5% 714.3
TOTAL 15000.0
ENTRY
Discount Given 14285.7
Output Vat 5% 714 .3
TO A LTD 15000
Since party is credited in this entry ,we will issue a credit note
-ea-
Summary
In Last Question ,vat is extra and in This Question vat is inclusive
| Particular | Last Question | This Question |
| DISCOUNT | 15000 | 14285.7 |
| + VAT 5% | 750 | 714.3 |
| TOTAL | 15750 | 15000.0 |