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-   -   Goods withdrawn for own use with VAT and replacement value (https://www.askmehelpdesk.com/showthread.php?t=408534)

  • Oct 21, 2009, 11:59 PM
    Tafon
    Goods withdrawn for own use with VAT and replacement value
    Hi
    Please can some one help me out with this:
    A trader withdraws goods worth $500 from stock for personal consumption. The replacement value of the goods is $502. Value Added Tax is charged at 19.25%.
    How will this transaction be recorded in the journal of the trader?
  • Oct 22, 2009, 10:02 PM
    rehmanvohra

    Debit Drawings 596.25
    Credit Inventory 500
    Credit Vat 96.25

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