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Benzon A. Ondovilla - 2. Assignment-VAT On Sale of Goods or Properties
Benzon A. Ondovilla - 2. Assignment-VAT On Sale of Goods or Properties
ASSIGNMENT 2
1.
Cash Sales ₱ 1,760,000
Sales on account ₱ 513,000
Gross Selling Price ₱ 2,273,000
2.
Cash Sales, net (594,000-13,200) ₱ 580,800
Deemed Sales:
Payment of goods to creditors ₱ 27,500
Consignment sales ₱ 34,100
Out on consignment – 75 days ₱ 68,750
Goodwill to employees ₱ 11,000 ₱ 141,350
Total ₱ 722,150
Multiply by 3/28
Output Tax ₱ 77,373
Less: Input Tax
Purchases ₱ 253,000
Multiply by 3/28
Input Tax ₱ 27,107
VAT Payable ₱ 50,266
Answer:
The amount of output tax ₱ 77,373.
The amount of VAT payable ₱ 50,266.
The amount of transaction deemed sale ₱ 141,350.
3.
Domestic sales (1,452,000 x 3/28) ₱ 155,571
Export sales (1,815,000 x 0%) ₱ -
Output tax ₱ 155,571
Less: Input tax
Purchases – domestic (618,200 x 3/28) ₱ 66,236
Purchases – export (422,000 x 3/28) ₱ 45,214
Purchases – supplies (254,100 x 3/28) ₱ 27,225 ₱ 138,675
VAT Payable ₱ 16,896
Answer:
The VAT payable of Development Company is ₱ 16,896.
4.
Sales (VAT business) ₱1,000,000
Multiply by 3/28
Output Tax ₱ 107,143
Less: Input Tax
Purchases (VAT business) (448,000*3/28) ₱ 48,000
Purchases (VAT and Non-VAT
business) (110,880*3/28) ₱ 11,880
Allocation based on sales:
Sales (VAT business) ₱ 1,000,000
Sales (Non-VAT business) ₱ 500,000
Total ₱ 1,500,000
[(1,000,000/1,500,000)*11,880] ₱ 7,920 ₱ 55,920
VAT Payable ₱ 51,223
Answer:
The VAT payable of Combined Company is ₱ 51,223.
5.
2% in Inventory:
Goods for resale ₱ 1,350,000
Goods manufactured ₱ 1,562,000
Goods in process ₱ 616,000
Goods purchased for processing ₱ 429,000
Total ₱ 3,957,000
Multiply by 2% ₱ 79,140
Actual VAT Paid ₱ 365,000
Transitional Input Tax (Higher) ₱ 365,000
Answer:
The transitional input tax of Tracing Company ₱ 365,000.
Directions:
PROBLEM SOLVING: Provide your solutions and final answer on a separate sheet of paper.
2. (15 points) The following data relates to the transactions of Villa Lina Company for the
month of November (amounts are gross of tax):
Sales 594,000
Sales returns and allowances 13,200
Payment of goods to creditors 27,500
Consignment sales 34,100
Goods out on consignment – 45 days 22,000
Goods out on consignment – 75 days 68,750
Distribution of goods as goodwill to employees 11,000
Purchases 253,000
5. (5 points) Tracing Company became subject to VAT effective January 1, 2019. The
records of its inventory on hand follow:
Goods purchased from VAT suppliers for resale 1,350,000
Goods purchased from nonVAT suppliers 654,320
Goods manufactured by the company 1,562,000
Goods in process 616,000
Goods purchased for processing 429,000
How much is the transitional input tax of Tracing Company? ₱ 365,000