Hi,
We sell certain products below purchase price.
In vat regime we markup 5% and pay taxes and then discount is deducted. This is to avoid under invoicing. But can we follow this im gst?
This system clashes with the format of applying tax to the discounted value. Some customers also objects this method as it doesnt get synchronized with their system.
Thank you.
Office Taken on Rent from Ansal Properties @ Rs. 15000/- Per Month, One Month Rent and Two month Rent as security deposit given by cheque
As per me entry should be
1)Security Deposit A/c Dr. Rs.30000
2)Prepaid Rent A/c Dr. 15,000
TO Bank A/c Rs.45,000
On 1st of next month
Rent A/c Dr. Rs.15,000
To Bank A/c 15,000
As per me The Entry also can be made like this
Ansal Property A/c Dr. Rs.30,000/
To Bank A/c Cr. Rs.30,000/-
(Being Security Deposit paid to M/s Ansal Properties for Office Space)
Prepaid Rent A/c Dr. 15,000/-
To, Bank A,c Dr. 15,000/-
If we utilise the office for complete month then on first of next month we should make entry
Rent A/c Dr. 15,000
To, Bank A/c Dr.15000
To Fitoos the Prepaid Rent Entry
It is possible that we only give Two month Security deposit and rent for the month will be actually paid on next month that too after receipt of rent receipt.
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