[mail2kgp]

When we sales our goods we charge sales tax to customer and WE pass JE
Banks a/c Dr 100 Asset
Sales a/c Cr. 90 sales
Sales tax payables a/c Cr. 10 Liability

Now we paid to Govt. this sales tax

Sales tax payables a/c Dr. 10 Liability
Bank a/c Cr. 9 Asset
Vendor's compensation a/c Cr. 1??

My question is Above JE is OK ? And how do I classify Vendor's compensation A/c i.e. income, liability

[mail2kgp]

When we sales our goods we charge sales tax to customer and WE pass JE
Banks a/c Dr 100 Asset
Sales a/c Cr. 90 sales
Sales tax payables a/c Cr. 10 Liability

Now we paid to Govt. this sales tax

Sales tax payables a/c Dr. 10 Liability
Bank a/c Cr. 9 Asset
Vendor's compensation a/c Cr. 1 ???????????

My question is Above JE is OK ? and how do i classify Vendor's compensation A/c i.e. income, liability

Income!!