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Practical Exercise Under VAT

The document provides details of transactions for an automobile dealer and manufacturer called Aman Motors including: 1) Purchases of vehicles and parts attracting 4% VAT along with returns and local purchases. 2) Sales of vehicles attracting 4% VAT along with branch transfers. 3) Capital purchases including machinery attracting 4% VAT and input tax credit allowed in installments. 4) Closing entries including a VAT adjustment entry to close monthly transactions.

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Sanjay Kumar
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© Attribution Non-Commercial (BY-NC)
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176 views

Practical Exercise Under VAT

The document provides details of transactions for an automobile dealer and manufacturer called Aman Motors including: 1) Purchases of vehicles and parts attracting 4% VAT along with returns and local purchases. 2) Sales of vehicles attracting 4% VAT along with branch transfers. 3) Capital purchases including machinery attracting 4% VAT and input tax credit allowed in installments. 4) Closing entries including a VAT adjustment entry to close monthly transactions.

Uploaded by

Sanjay Kumar
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Practical Exercise under VAT @ VAT Tally.

ERP 9 Create a new company called Aman Motors, an Automobile dealer and also a manufacturer of Automobile Spare parts. Create the following masters and VAT related transactions: i. Party Ledgers Ledger Under Maintain balances bill-bybill Yes Yes Yes Yes No No Inventory values are affected No No No No Yes Yes Used in VAT Returns No No No No Yes Yes

Jyoti Automobiles Joy Autos Susmit & Son's Impact Automation Purchases @ 4% Sales @ 4%

Sundry Creditors Sundry Creditors Sundry Creditors Sundry Debtors Purchase Accounts Sales Accounts

ii. VAT Ledgers Type of VAT/Tax Class Duty/Tax Input VAT @ 4% Duties & Taxes VAT Input VAT @ 4% Output VAT @ 4% Duties & VAT Output VAT @ Taxes 4% Input VAT @ Duties & VAT Input VAT @ 12.5% Taxes 12.5% Ledger Under

iii. Stock Items Item Honda Bikes Honda Moped Honda Engine Crank Vertical Honing machine Under Two Wheelers Two Wheelers Two Wheelers Assets Units Nos Nos Nos Nos Opening Rate Rate of Balance VAT (%) 2 nos 50000 4 4 nos 30000 5 nos Nil 4000 Nil 4 12.5 4

Enter the following Transactions S.No 1. Date 5-6-09 Particulars

2.

3. 4.

Purchased from Jyoti Automobiles Bangalore. Vide bill no. JA-001, Honda Bikes 10 nos at Rs. 65000 each & Honda Moped 20 nos at Rs. 32000 each, VAT @ 4% was charged additionally. 7-6-09 Sold to Impact Automation Bangalore, Honda Bikes 2 nos at Rs. 75000 & Honda Moped 4 nos at Rs. 45000, all items attract 4% VAT. 12-6-09 Jyoti Automobiles returned 1 no. Honda Bike to Aman Motors 19-6-09 Purchased Honda moped 15 nos. at Rs. 30000 each from Unregistered dealer Joy Autos vide Bill No. JY-005

5.

26-6-09 Aman Motors purchased Vertical Honing Machine at Rs. 1872000 (VAT @ 4%) from Susmit & Son's. Vide bill no. SS-022. On 26-5-09 Tax author- ities allowed a tax credit of Rs. 60000 to be set-off in 12 monthly instal- ments. Hint: Enter the above entry in three transactions, first capitalize the full value in purchase voucher then pass a journal entry for the input credit allowed and finally pass a journal entry for claiming the instalment for the month.

S.No Date Particulars 6. 30-6-09 Local Purchases of 10 nos Honda Engine crank at Rs. 4000 each from Somitel Motors and Input VAT of 12.5% was applicable. Vide bill no. SM033 These goods were transferred to a branch outside the state i.e to the Raipur Branch. (Remember being a manufacturing company upto 4% of Input VAT is disallowed) Hint: Enter the above entry in three transactions, first pass a local pur- chase voucher then enter a sales invoice for Branch Transfer and finally pass the journal entry for Adjustment of Input credit on Transfers Outward 7. 30-6-09 Pass the VAT Adjustment Entry.

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