Mrs. Carol Wasike is a practicing accountant working under the style and name of Wasike and Associates. Her firm is registered for Value Added Tax (VAT). During the month of September 2018, she undertook and completed the following assignments:

2 September	-	Tax consultancy work for ABC Ltd. her fees were sh.240,000 inclusive of VAT.
4 September	-	Audit for Rwandacell, a company based in Rwanda. Her fees amounted to Sh.840,000 exclusive of VAT.
10 September	-	Management consultancy services for Kikwetu Ltd. she billed them for sh.360,000 inclusive of VAT.
15 September	-	Her firm was appointed by XYZ Ltd. to undertake a review of the internal control systems of the company. Her fees were Sh.1,200,000 exclusive of VAT.
17 September	-	The firm conducted the audit of Kikwetu Ltd. for the year ended 31 December 2000. Charges were Sh.480,000 inclusive of VAT.
18 September	-	The firm was appointed by Stima Ltd to conduct a survey on power consumption at a fee of Sh.2,400,000 (exclusive of VAT).
19 September	-	Her firm audited the accounts of Miracle Ministries, a church where she serves as a volunteer auditor. She estimated that her fees would have been Sh.720,000 exclusive of VAT.
21 September	-	The firm bill Kikwetu Limited Sh.136,000 (inclusive of VAT) for debt collection services.
22 September	-	The firm undertook a financial consultancy assignment for World net South Africa, a company based in South Africa. The fees were Sh.420,000 exclusive of VAT.
24 September	-	Conducted audit of Lengo Ltd. at a fee of Sh.180,000 inclusive of VAT.
26 September	-	Provided accountancy services to Rehema Children’s Home on a volunteer basis. The estimated value of the services was Sh.90,000 inclusive of VAT.
30 September	-	Performed audit services for Ujamaa County Council. The fees earned were Sh.860,000 exclusive of VAT.

During the month of September 2018, the firm paid for the following services:

Electricity Sh.42,500

Water Sh.2,400

Rent Sh.120,000

Garbage collection Sh.36,000

Stationery Sh.960,000

Computer repairs and maintenance Sh.240,000

Telephone Sh.330,000

(where applicable, the above payments were VAT inclusive)

Required:

(a) Prepare a VAT Account for Wasike and Associates for the month of September 2018.

(b) The VAT you have computed in (a) above, was paid on 22 October 2018 since 20 October was on a Saturday. The VAT return was also submitted on the same day. How much additional tax would be payable, if any?

(c) Kikwetu Limited was the subject of a creditor’s voluntary winding up and the appropriate resolution was passed on 1 April 2019. By that time the company paid Wasike and Associates only Sh.240,000 for services rendered. Assuming that all the conditions for the refund of bad debt relief are met, calculate the amount of VAT bad debt relief.