9.

A VAT-registered practicing lawyer disclosed the following during a month: Total professional fees billed 800,000 Total pro
onal fees billed 800,000 Total professional fees collected 600,000 Advances by certain clients 200,000 Compute the output VAT. a. P120,0
ompute the output VAT. a. P120,000 b. P96,000 c. P72,000 d. P88,286 Note: (P600,000 + P200,000) x 12% = P96,000. The term “fees” inh
2% = P96,000. The term “fees” inherently excludes Output VAT. 10. A VAT-registered service provider prepared the following list of cash c
epared the following list of cash collections during a month: Gross receipts inclusive of VAT 504,000 Client advances 200,000 Proceeds of
nt advances 200,000 Proceeds of bank loan 300,000 Total 1,014,000 Compute the output VAT. a. P54,000 b. P78,000 c. P84,480 d. P108,6
00 b. P78,000 c. P84,480 d. P108,643 Note: (P504,000 x 12/112) + (P200,000 x 12%) Multiple Choice – Problems: Part 2 1. A VAT-registere
roblems: Part 2 1. A VAT-registered seller of goods billed a customer the following: List price 800,000 Trade discount 125,000 Net price 67
ade discount 125,000 Net price 675,000 The credit term for the sale was 2%/15, n/60 days. What is the output VAT? a. P96,000 b. P81,00
output VAT? a. P96,000 b. P81,000 c. P79,380 d. P70,875 Note: P671,000 x 12% = P81,000