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View Full Version : How to journalize vat registered business


blehra
Aug 26, 2012, 06:52 PM
Purchased office supplies from National Bookstore P1500 Terms: COD (VAT registered)

paraclete
Aug 26, 2012, 07:27 PM
You need to decide how you will record transactions, including VAT or excluding VAT
If Including VAT then Debit Office Supplies Credit Cash for the entire amount
If excluding VAT the debit Office Supplies for the net amount, debit VAT Paid for the VAT amount and credit cash for the entire amount