Selecting Nature of Adjustments

      The journal vouchers can be recorded by selecting the nature of adjustments 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

Credit: Surcharge ledger

Input Tax Adjustment for Purchases Tax Sch. H Items

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Debit: Input VAT ledger

Credit: Current Assets ledger

Reversal of Input Tax

Purchase Tax Sch. H Items

Debit: Expenses ledger

Credit: Input VAT ledger

Credit: Surcharge ledger