Question { 3083 }

Who are the Users of Financial Information

Answer

1) Internal Users of Financial Information are;

(a) Management,
(b) Employees,

2) 1) external Users of Financial Information are;

(a) Short-term and Long-Term Creditors,
(b) Investors
(c) Lenders
(d) Suppliers
(e) Customers
(f) Governments and their agencies (Tax Authorities)
(g) General Public

Regards,
Malaya2100

Question { 3083 }

Who are the Users of Financial Information

Answer

1) Internal Users of Financial Information are;

(a) Management,
(b) Employees,

2) 1) external Users of Financial Information are;

(a) Short-term and Long-Term Creditors,
(b) Investors
(c) Lenders
(d) Suppliers
(e) Customers
(f) Governments and their agencies (Tax Authorities)
(g) General Public

Regards,
Malaya2100

Question { 5019 }

One bill how calculate vat & Service tax

Answer

1) Vat should be calculated on the net amount. e.g net
amount Rs.5000/- and vat rate according to your
applicability whether 4%/5%/12.5%.

Net amount = 5000
Vat = 200 (Taken 4%)
Total = 5200 (including Vat)

i) (in case of Sales)

Abc a/c dr Rs.5200
To Sales Rs.5000
To vat Rs.0200

ii) (in case of Purchases)

Purchases a/c Dr.5000
Vat a/c Dr.0200
To Abc a/c dr Rs.5200

2) Service Tax should be charged if taxable service provided
and mentioned in the invoices otherwise not.

NOTE : VAT and Service Tax are mutually exclusive taxes can
not charge both on at a time. So, there must be service
charges mentioned to charge service Tax.

Regards,
Malaya2100