Santos, Farina Jane C.

ACED 18 Business Taxation

BSA II-13

Reinforcement #5
Problem 1: 8.5
ABC Corporation (VAT Registered) has the following data for the month of March:
Gross Sales (VAT Exclusive) P8,000,000
Sales Returns 400,000
Goods shipped on consignment (net)
Units Unit Price
March 25 40 10,000
February 14 30 10,000
January 8 20 10,000
Goods withdrawn for use by the company P 50,000
Goods taken as payment to creditor 30,000
Purchases for the month (net of vat):
Goods 600,000
Services 75,000
Capital goods (Useful Life: 4 years) 1,100,000
Freight and Insurance 8,500
Salaries of employees 385,000
Additional information:
• Received cash representing payment for ten (10) units delivered on February 14. The amount
received was net of ten percent (10%) commission.
• A consignee reported and remitted P200,000 (gross of 10% commission) representing 20 units
sold from goods consigned in March. Required: Determine the VAT Payable for the month of
March.
Required: Determine the VAT Payable for the month of March.
SOLUTION:
OUTPUT:
Sales (8,000,000-400,000x12%) 912,000
Sales from consignment Mar and Feb ((20+10x10,000) x12%) 36,000
Consignment Jan ((20x10,000)x 12%) 24,000
Goods withdrawn for use by the company (50,000x12%) 6,000
Goods taken as payment to creditor (30,000x 2%) 3,600 981,600
INPUT:
Santos, Farina Jane C. ACED 18 Business Taxation
BSA II-13

Problem 2: 8.10
The following data (vat exclusive) are available for the first two quarters of 2018:
1st Quarter Sales 3,000,000
Purchases 1,200,000
Purchased of machinery on Jan 1 with useful life of 3yrs. 2,500,000
Unused input vat as of end of 2017 125,000
2nd Quarter Sales 4,800,000
Purchases 3,000,000
Required:
a. Determine the vat payable/excess input tax for the 1st quarter.
b. Determine the value added tax/ excess input tax for the second quarter assuming the
machinery bought on January 1 was sold on June 30.

Problem 3: 8.11
An owner of warehouse, which used to be exempt, because its annual receipts never exceeded
the vat threshold, decided to register under the vat system on January 2, 2018. The following
data were from the 1st quarter ending March 31, 2018:
Rental from warehousing services, net of vat P 336,000
Purchases of supplies in February, gross of vat 112,000
Inventory of supplies, January 1, 2018 100,000
Vat on inventory of supplies, January 1, 2018 10,000
Required: Determine the VAT Payable for the quarter ending March 31, 2018
Santos, Farina Jane C. ACED 18 Business Taxation
BSA II-13
Problem 4: 8.12
JJ is a VAT registered processor of sardines. The following data were provided for purposes of
determining the taxpayer’s vat payable:
SALES (processed sardines, exclusive of vat) P 800,000
PURCHASES/PAYMENTS:
Sardines purchased from fish dealers (invoice amount) 200,000
Tomatoes purchased from farmers 85,000
Purchased of olive oil (invoice amount) 67,200
Purchased of can containers (excl. of vat) 25,000
Payments for paper labels (excl. of vat) 12,000
Purchased of cardboard for boxes (incl. of vat) 8,960
Payments for hauling services from non-vat registered forwarders 100,000
Required:
a. Determine the presumptive input tax.
b. Determine the value added tax payable/ excess input tax of JJ