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what is the entry to be made for vat when any purchase is
made in that bill vat amount is included ?
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Answer Posted / radhika
PURCHASE A/C DR.
PARTY A/C
| Is This Answer Correct ? | 3 Yes | 7 No |
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I am a Leaving Cert Student. From Solutions to exam questions etc. I know what to do with the following adjustment but I cannot explain why. A thypical Adjustment is: A building is acquired for €60000 plus VAT at 10%. The amount paid to the Vendor was entered in the Buildings Account. No entry made in the VAT account. Could you explain why the VAT amount is deducted from the VAT amount in the TB? And why it is sometimes an Asset in the BS. Thank you, Mary
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