I would like to find out which one of the following is the best practise in terms of IFRS

We paid a supplier $114k including VAT and the supplier does not deliver
Initial entry was
DR: Expense $100k (I/S)
DR: VAT $ 14k (B/S)
CR: Accounts Payable $114k

DR: accounts payable $114
CR: Bank $114

6 Months down the line, the supplier has not delivered as promised, case is opened against him and he pays $70k immediately and balance after 2 months

Treatment: DR Bank $70k
CR Other income $62k
CR VAT $8K

Or
The correcting entry would be:

Dr Debtor (David Tlale)
Cr VAT Input
Cr Uniform Expense
Being uniform not delivered and funds to be recovered from supplier. (My view is that this didn't occur in the same accounting period hence you can't not credit that expense account


As you receive the money
Dr Bank
Cr Debtor (David Tlale)
Refunds received from David Tlale for uniform not delivered.