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What will be the Journal Entry for this?
Purchases goods from vendor worth Rs.20000.VAT included 4%.

Answer Posted / sagar

1-
Purchase A/c -------DR  19,200
Input Tax A/c-------DR     800
     to Vendor A/c             20,000
(Being Purchase done on CR basis)


2-
Vendor A/c ---------DR   20,000
      to Bank/Cash A/c          20,000 
(Being cash paid to the vendor)

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