Question

Purchased goods from ramesh

Rs.20,000 less trade discount at 20 percent plus VAT @ 10 percent.

Answer 1

Hi friend,

Your question related to VAT

It will be recorded in Purchase Day book .

Journal entry :-

Purchase A/c----------- Dr. 16,000
Input VAT A/c ---------- Dr. 1,600
To Ramesh A/c 17,600

( Being , purchased goods on @ 20 % trade discount and @ 10 % VAT )