1 / 11

Value Added Tax (VAT)

Value Added Tax (VAT). Notes. 1- The amount shall be paid if the total Sales VAT is greater than the sum of the purchase VAT. 2- The amount of the return if the total Sales VAT is less than the sum of the purchase.

demetrius-price
Download Presentation

Value Added Tax (VAT)

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Value Added Tax (VAT)

  2. Notes 1- The amount shall be paid if the total Sales VAT is greater than the sum of the purchase VAT. 2- The amount of the return if the total Sales VAT is less than the sum of the purchase. 3- Amount to pay  the difference between VAT on sales and VAT on purchase.

  3. Case(2): The following are some information for Hadara Company, and tax registration number 563105114 for 12/2009: Purchases : 1- On 3/12 purchased 5 fridges amounted 3000 per unit and not include VAT, from Naser Company invoice number 64 on credit. 2- On 7/12 purchased 5 TVs 16« with price 1300 per unit, and 6 TVs 20« with price 1700 per unit and the price not include VAT, invoice number 257.

  4. 3- On 16/12 purchased 10 fans with price 105 per unit include VAT and 8 heaters with price 120 per unit include VAT from Sharaf Company invoice number 346 with cheque. 4- On 31/12 paid Paltel expense invoice number 791 with total amount 232 . 5- On 31/12 the company return 2 fridges to Naser company and get sales return invoice number 6.

  5. Sales: 1- On 3/12 sold 3 fridges with total value 12600. 2- On 15/12 sold 4 SONY TVs 16« with price 1800 per unit includes VAT and 6 TVs 20« with price 2200 per unit include VAT with cheque. 3- On 23/12 sold 8 fans with basic value 760 by cheque. Note : The NIS is the currency used.

  6. Required: 1-Prepare the statement of sales and purchase for 12/2009. 2-Prepare the journal entries for the transactions that occurred on 12/2009. 3- Determine the VAT to be paid or refund, and prepare the related entries.

  7. Purchase statement :

  8. Purchase entries:

  9. Sales statement:

  10. Sales entries:

  11. VAT = In tax – out tax = 4289.23– 3981.04 = 308.19 The adjusting entry for preparingfinancial statement 12/2009 is: VAT 308.19 Accrued VAT 308.19 According to the tax law (VAT must be paid before 15/1/2010) The entry of : Accrued VAT 308.19 Cash 308.19

More Related