The following summary of transactions were obtained from the books of Zawadi Ltd., a company registered...
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The following summary of transactions were obtained from the books of Zawadi Ltd., a company registered for value added tax (VAT) for the month of October 2020: Sh. Sales at standard rate 1,480,000 364,000 Exports to a foreign country Audit fees 78,300 Electricity bills 36,400 Imported raw materials 320,000 Purchases at standard rate 624,500 700,000 Exempt supplies Catering services 94,000 120,000 Entertainment services Telephone bills 28,000 Car parking services 50,000 64,000 Bottled drinking water for staff Zero rated supplies (exports) Repairs of motor vehicles 240,000 76,200 Additional information: 1. 2. Sales at standard rate include goods valued at Sh.280,000 purchased at standard rate and sold at the same state. Imported raw materials was exclusive of freight charges of Sh.80,000 and insurance premium of Sh.40,000. Import duty rate was at 20%. 3. A debtor was issued with a credit note for goods valued at Sh.48,000 and this had not been passed through the relevant daybook. 4. The company issued debit notes valued at Sh.164,000 in respect to under invoicing of some customers. 5. Repairs of motor vehicles include Sh.20,000 for fuels and oils supplied to the company. Transactions are exclusive of VAT at the rate of 14% where applicable. Required: The VAT payable by or refundable to Zawadi Ltd. for the month of October 2020. (10 marks) (Total: 20 marks) The following summary of transactions were obtained from the books of Zawadi Ltd., a company registered for value added tax (VAT) for the month of October 2020: Sh. Sales at standard rate 1,480,000 364,000 Exports to a foreign country Audit fees 78,300 Electricity bills 36,400 Imported raw materials 320,000 Purchases at standard rate 624,500 700,000 Exempt supplies Catering services 94,000 120,000 Entertainment services Telephone bills 28,000 Car parking services 50,000 64,000 Bottled drinking water for staff Zero rated supplies (exports) Repairs of motor vehicles 240,000 76,200 Additional information: 1. 2. Sales at standard rate include goods valued at Sh.280,000 purchased at standard rate and sold at the same state. Imported raw materials was exclusive of freight charges of Sh.80,000 and insurance premium of Sh.40,000. Import duty rate was at 20%. 3. A debtor was issued with a credit note for goods valued at Sh.48,000 and this had not been passed through the relevant daybook. 4. The company issued debit notes valued at Sh.164,000 in respect to under invoicing of some customers. 5. Repairs of motor vehicles include Sh.20,000 for fuels and oils supplied to the company. Transactions are exclusive of VAT at the rate of 14% where applicable. Required: The VAT payable by or refundable to Zawadi Ltd. for the month of October 2020. (10 marks) (Total: 20 marks)
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Zawadi Ltd Calculation of VAT payable or refundable Taxable Particulars Amount VAT VAT Amount Taxabi... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-0134472140
13th edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
Posted Date:
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