Sold goods worth 425760 on credit to ABC Traders which is inclusive of 4% vat

Sold goods worth 425760 on credit to ABC Traders which is
inclusive of 4% vat tax.Pass sales entry with Vat tax

Question Posted / satyaki_raju@yahoo.com

4 Answers
9051 Views
I also Faced
E-Mail Answers

Answers were Sorted based on User's Feedback

Sold goods worth 425760 on credit to ABC Traders which is inclusive of 4% vat tax.Pass sales entry..

Answer / satyaki_raju@yahoo.com

Than Q very much for a speedy response But sorry for the
wrong answer.Under the system of double entry every debit
will have corresponding equal credit. But according to you
you debited ABC with 425760 but corresponding credit is
only 40872.60+17030.40=57903 So you commited a mistake in
tallying the corresponding entry.
We will discuss about the question once again
sale price is inclusive of 4% vat tax,in other words total
sale amount is basic price +vat tax
So calculation should be like this
If total sale price is 104 the basic price will be 100
If total sale price is 425760 what will be the basic price
The answer will be
425760*100/104=409384.60
Then the entry will be
ABC a/c dr 425760
To Vat output=(425760-409384.60)16375.40
To sales 409384.60
(Being sales with vat tax)

Is This Answer Correct ?

13 Yes

0 No

Sold goods worth 425760 on credit to ABC Traders which is inclusive of 4% vat tax.Pass sales entry..

Answer / viswa

ABC Traders A/c Dr. Rs.4,25,760/-
To Sales A/c Cr. Rs.4,09,384/-
To Vat Tax @ 4% Cr. Rs. 16,376/-

(Being sale of goods to M/s. ABC Traders as per bill no)

Is This Answer Correct ?

8 Yes

0 No

Sold goods worth 425760 on credit to ABC Traders which is inclusive of 4% vat tax.Pass sales entry..

Answer / guest

ABC TRADERS A/C DR.425760.00
TO SALE 40872.96
TO VAT @ 4% 17030.40

Is This Answer Correct ?

12 Yes

8 No

Sold goods worth 425760 on credit to ABC Traders which is inclusive of 4% vat tax.Pass sales entry..

Answer / harish sharma

sales A/c Dr. Rs 409384/-
vat Tax @ 4 % RS 16376/-
To ABC Traders Cr. 425760

Is This Answer Correct ?

1 Yes

3 No

Post New Answer

More Accounting AllOther Interview Questions

how cash transferred from sbi to andhra bank can be post in tally? (i.e.at the place of Account what we have to post) (at the place of particulars what we have to post)

1 Answers

Why we are prepaparing Debtors and Creditors list for more than lessthan 6 months at the year ending?

4 Answers

WHAT the method of calculate MAT

2 Answers

How do u show Drawings In Trading Account ?

8 Answers

WHAT ARE THE DIFFERENCE BETWEEN RESERVES AND PROVISIONS?

7 Answers HP,

What are motive behind mergers And acquisitions?

0 Answers

how to prepare mba finance for interview questions