I have stumbled across vat. Can anyone please write me the journal entries for the following?
Cash sales 500. Vat 50.
Cash purchase 1000. Vat 100.
Credit sales 1500. Vat 150.
Credit purchase 2000. Vat 200.

The values are random. I just want to know Which accounts will be credit and which will be debit.

VAT tax (UK) is value added tax, usually 20 per cent, on product, material. And services charged back to the consumer and reported to the government on a quarterly basis. In CDA it is GST, goods and services tax.

Offered as a hint so you know how to account for it.

Yes. Its like Cash DrSales creditVat credit. Oppesite entry for purchase.

what you would usually do is have a clearing account VAT and debit/credit the amounts collected and paid, then you reconcile these transactions to do theVAT return