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-   -   Sales tax paid JE (https://www.askmehelpdesk.com/showthread.php?t=263168)

  • Sep 23, 2008, 07:42 AM
    mail2kgp
    Sales tax paid JE
    When we sales our goods we charge sales tax to customer and WE pass JE
    Banks a/c Dr 100 Asset
    Sales a/c Cr. 90 sales
    Sales tax payables a/c Cr. 10 Liability

    Now we paid to Govt. this sales tax

    Sales tax payables a/c Dr. 10 Liability
    Bank a/c Cr. 9 Asset
    Vendor's compensation a/c Cr. 1??

    My question is Above JE is OK ? And how do I classify Vendor's compensation A/c i.e. income, liability
  • Sep 23, 2008, 07:46 AM
    mail2kgp
    Quote:
    Originally Posted by mail2kgp View Post
    When we sales our goods we charge sales tax to customer and WE pass JE
    Banks a/c Dr 100 Asset
    Sales a/c Cr. 90 sales
    Sales tax payables a/c Cr. 10 Liability

    Now we paid to Govt. this sales tax

    Sales tax payables a/c Dr. 10 Liability
    Bank a/c Cr. 9 Asset
    Vendor's compensation a/c Cr. 1 ???????????

    My question is Above JE is OK ? and how do i classify Vendor's compensation A/c i.e. income, liability
    Income!!

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