What is the entry in folllowing cases
1.Excise Bill for Purchase
| A LTD | |
| Purchase | 100000 |
| Excise 12.5% | 12500 |
| Total | 112500 |
| Vat 5% (of Total) | 5625 |
| Grand Total | 118125 |
View answer
Purchase 5% Local Dr 112500
Input vat 5% Dr 5125
To A 118125
2.Vat on Expenses
| G LTD | |
| Office Stationary | 8000 |
| vat 5% | 400 |
| 8400 | |
View answer
Office Stationery Expense Dr 8400
To G 8400
3. Service Tax on Expenses
| AIRTEL | |
| TELEPHONE | 2500 |
| Service Tax 14% | 350 |
| 2850 | |
View answer
Telephone Expense Dr 2850
To Airtel Dr 2850
4.Vat on Machine used in Office
| D LTD | |
| Machine | 90000 |
| vat 5% | 4500 |
| 94500 | |
View answer
Machine Dr 94500
To D Ltd 94500
5.Vat on Machine Used in Production or Sales (Capital Goods)
| D LTD | |
| Machine | 90000 |
| vat 5% | 4500 |
| 94500 | |
View answer
Machine Dr 90000
Input Vat Capital Goods Current year Dr 1500
Input Vat Capital Goods Deferred Dr 3000
To D 94500
Entry next year
Input Vat Capital Goods Current year Dr 1500
To Input Vat Capital Goods Deferred 1500
Entry next to next year
Input Vat Capital Goods Current year Dr 1500
To Input Vat Capital Goods Deferred 1500