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Value Added Tax (VAT) is not recorded in the profit and loss account because it is a tax collected on behalf of the government, not an expense or revenue of the business. Instead, VAT collected from customers is recorded as a liability until it is paid to the tax authorities, while VAT paid on purchases is recorded as an asset or expense. Only the net impact of VAT, if any, after offsets is reflected in the financial statements.
What else can I help you with?
How do you treat income tax in a profit and loss statement?
In a Profit and Loss Account, you put income tax that you pay to the government in the third section, the appropriation account.
When debit amount of profit and loss account is greater than the credit amount you say the firm is in loss but when assets of the firm increases you take it as debit ac how?
You will take 500 dollards and put 7 on
Is retain earning account is equal to profit or loss?
Profits and losses are determined via the income statement. When you close out the books for the year that profit or loss gets closed and becomes part of the retained earnings. A loss would decrease retained earning and a profit would increase it. Loosely put, the retained earnings account is a cummulation of all the profits and losses over the years (not counting any other things that affect the bottom line like dividends paid out and such)
What is provision of depreciation?
Provision of depreciation is allowance account in which every year fixed amount is put to charged against actual depreciation so that planned income statement can be prepared and profit remains smooth.
What is it called when you put money in your account?
When when you put money in your account it is called "making a deposit."
How do you treat income tax in a profit and loss statement?
In a Profit and Loss Account, you put income tax that you pay to the government in the third section, the appropriation account.
What commission is payable on transactions?
in the trading and profit and loss account where do i put commission payable
Where put entry outstanding expenses in profit and loss account?
Outstanding expenses are put on the credit side in a loss and profit account. Outstanding expenses refer toÊthe amounts of money that are due for things like rent that are not yet paid.
When debit amount of profit and loss account is greater than the credit amount you say the firm is in loss but when assets of the firm increases you take it as debit ac how?
You will take 500 dollards and put 7 on
Is retain earning account is equal to profit or loss?
Profits and losses are determined via the income statement. When you close out the books for the year that profit or loss gets closed and becomes part of the retained earnings. A loss would decrease retained earning and a profit would increase it. Loosely put, the retained earnings account is a cummulation of all the profits and losses over the years (not counting any other things that affect the bottom line like dividends paid out and such)
How do you put the payroll on a balance sheet?
Payroll expenses account goes to Profit & Loss account while Payroll payable is a Balance Sheet Liability item... Journal entry:Payroll Expense Account - DR ...........(P&L)Payroll Payable Account - CR ............(B/S)
How to put vat on?
VAT is now at 20%, so take the price and multiply by 1.2 to give price with VAT.
Can you provide a visual representation of the profit and loss potential of a long put option through a graph?
A long put option gives the holder the right to sell a stock at a specified price. The profit potential of a long put option increases as the stock price decreases below the strike price. The loss potential is limited to the premium paid for the option. Here is a graph that shows the profit and loss potential of a long put option: Graph showing the x-axis as stock price and the y-axis as profit/loss. The graph shows a downward sloping line representing potential profit as stock price decreases below the strike price, and a horizontal line representing the maximum loss equal to the premium paid for the option.
How do you calculate vat in tally?
How do you calculate VAT in Tally 9.0 & how to put bank transcation in tally
What is the difference between insurance and gambling?
The goal of insurance is to put you in the same financial position you were in before the loss. The goal of gambling, is to come out ahead In insurance you either suffer the loss or maintain the status quo, one can never earn profit in insurance But in gambling there is a possibility of both loss as well as profit.
What is the tax rate for buying a car in mchenry county?
vat out put 12.5
How do you put prosper and profit in a sentence?
If you profit from your mistakes then you will prosper.
