VAT GoMo Ltd registered for VAT from 1 March 2020, all its sales were standard rated. GoMo
Question:
VAT GoMo Ltd registered for VAT from 1 March 2020, all its sales were standard rated. GoMo Ltd’s outputs and inputs for the VAT quarter to 30 November 200 were as follows: Outputs Inputs Sales Stock purchased Services incurred 845,400 Figures stated are exclusive of value Added Tax (VAT) 456,250 45,350 At the end of November, GoMo Ltd held £194,500 stock (exclusive of VAT).
Capital purchases made during the quarter also exclude VAT as detailed in note (ii)
iii. Building GoMo Ltd purchased a factory on 1 March 2020 for £320,000 (including £100,000 for the land). At the time of purchase the company knew it would need to spend an additional £20,400 to repair a hole in the building’s roof to make it usable for manufacturing purposes. These repairs are included as an expense in reaching the adjusted trading profit of £944,291 above.
The company also paid for the construction of a new storage building at a cost of £60,000. The building contract was signed on 1 April 2020, with the building brought into use from 1 November 2020.
Required:
Calculate the net VAT GoMo Ltd will need to pay for the VAT quarter ended 30 November 2020 and state the date by which this VAT should have been paid.
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura