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5%purchased good RS 10000 ?how to calculate VAT ?pass journal entry

Under VAT calculation,there having two kinds of VAT ..that is input VAT and Output VAT

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Question added by mohammed Anas tp
Date Posted: 2018/02/15
Saher Kamal Azeem
by Saher Kamal Azeem , Logistics Executive / WMS Administrator , Renovation Furniture Trading LLC

Purchases 10000 Dr

Input Vat      500 Dr

                      Cash/Bank       10500 Cr

Dhanya Reghu
by Dhanya Reghu , Accountant (Part Time) , Nandanam Paradise Apartments & Flats Owner’s Association

Purchases @ 5%   a/c    Dr.    10000

Input VAT @5%   a/c     Dr.       500

Bank / Cash/ S.Creditors  Cr               10500

(Vat Amount Calculated assuming the purchase amount is exluded VAT) 

Md Shafiquzzaman
by Md Shafiquzzaman , SR. EXECUTIVE , ORIENT ALLURE KNITWEAR LTD.

PURCHASED A/C                     DEBIT          9500

INPUT VAT                             DEBIT            500

      CASH/ BANK / VENDOR     CREDIT                 10000

OR

  PURCHASED A/C                     DEBIT          9500

OUTPUT  VAT                             DEBIT            500

      CASH/ BANK / VENDOR     CREDIT                 10000

BECAUSE WE CAN PROVIDE ONLY ONE SIDE VAT . NOT DOUBLED.

Irfan Ulhaq
by Irfan Ulhaq , Senior Auditor , Assist Plus

PURCHASES (DR) 10,000

VAT @ 5%    (DR)  500

PAYBLE         (CR) 10,500

IT IS ASSUMED THAT THE PURACHED PRICE IS VAT EXCLUSIVE. AND VAT ON PURCHASE OF GOOD AND SERVICES IS INPUT TAX

 

Manoj Kumar
by Manoj Kumar , Asst. Manager Tax & Logistics , Delta Electronics India Pvt Ltd

Purchase Accounts Dr Rs. 10000

Cr Cash A/c Rs. 9500

Cr 5% Vat Tax A/c Rs. 500

Mohamed Sirajudeen
by Mohamed Sirajudeen , Finance Manager

Purchase A/C Dr.,

Input VAT Dr.

To Bank/Cash/Vendor Cr.,

Mohammed Shereef Vakkayil
by Mohammed Shereef Vakkayil , Accountant , Arabian Medical & Scientific Laboratory Suppliers L.L.C

Purchase A/C  Dr. 10000

Input VAT       Dr. 500

To Cash or Bank/Vendor Cr. 10500

PURCHASE A/C - DEBIT    -   RS. 10000

INPUT VAT A/C  - DEBIT   -   RS.    500

 

       TO SUNDRY CREDITORS/BANK/CASH A/C CREDIT  - RS. 10500

 

ASSUMED THAT PURCHASE MADE FOR DIRECT USE IN BUSINESS.

 

Muhammad Asim
by Muhammad Asim , Assistant Group Financial Controller , Hoshan Group

VAT is equal to 500 SAR.

The journal entry is as follows: 

 

Purchases / Inventory (Dr)         10,000

VAT Recoverable amount (Dr)     500

   Supplier / Cash / Bank   (Cr)   10,500     

Syed Azmat Hussainn
by Syed Azmat Hussainn , Auditor , Rizwan and Company Chartered Accountants

To calculate VAT on Purchases the following formula is used 

VAT Inclusive price x 5/105

so 10000 x 5/105= 476

the Entry will be    DR Inventory 9524

                                  CR Cash 9524

for VAT                 Dr VAT Expense 476

                                       Cr Cash 476

Ijas Ahamed
by Ijas Ahamed , Accountant , Axis Auditing & Auditing

Dr. Purchase 1000

Dr. VAT Input 50

      Cr. Supplier 1050

 

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