Journal vouchers have to be recorded by selecting the nature of adjustments with associated additional details.
The journal vouchers can be recorded as given below:
Nature of Adjustment |
Additional Details |
Journal Entry |
Increase of Tax Liability |
Purchase Tax Sch. H Items |
Debit: Current Assets ledger |
Credit: Output VAT |
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Credit: Surcharge ledger |
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Input Tax Adjustment for Purchases Tax Sch. H Items |
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Debit: Input VAT ledger |
Credit: Current Assets ledger |
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Reversal of Input Tax |
Purchase Tax Sch. H Items |
Debit: Expenses ledger |
Credit: Input VAT ledger |
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Credit: Surcharge ledger |