Premises is and Fixed Assed in the accounting sense which is shown in the balance sheet in final accounts Vat adjustment is out put tax - input tax the vat which is paid on purchase will be deducted from vat collected from sales this adjustment is known as vat adjustment.

premises is a tangible asset in accounting sense which is shown asset side in the balance sheet (applications of funds)

1.

purchase a/c dr 10000

input vat@14.5% dr 1267

To sundry creditors 11267

2.

sundry debtor a/c dr 15000

To out put vat@14.5% 1900

To sales a/c 13100

3.

out vat Vat@14.5% dr 1900

To input vat@14.5% 1267

To vat payable 633

4.

vat payable a/c dr 633

To cash or bank 633