SOLUTION PROBLEM 1

A Sales P5,500,000/112% 4,910,714.28 E Outptut tax on Net Sales 574,885.71

Less: Returns, allowances and discounts 120,000.00 Input Tax on Net Purchases 409,392.86
Net Sales 4,790,714.28 Input Tax on Equipment and Supp 14,142.85 423,535.71
Vat Output Tax 574,885.71 VAT Payable 151,350.01

B Purchases 3,500,000.00
Less: Returns, allowances and discounts 99,000/1.12 88,392.86
Net Purchases 3,411,607.14
Vat Input Tax 409,392.86

C Cash or Accounts Receivable 5,500,000.00

Sales 4,910,714.28 F VAT Output Tax 574,885.71
VAT Output Tax 589,285.71 VAT Input Tax 423,535.71
VAT Payable 151,350.01
Purchases 3,500,000.00
VAT Input Tax 420,000.00
Cash or Accounts Receivable 3,920,000.00

D Sales returns, allowances and discounts 120,000.00

VAT Output tax 14,400.00
Cash or Accounts Receivable 134,400.00

Cash or Accounts Payable 99,000.00

VAT Input Tax 10,607.14
Purchases returns, allowances and discounts 88,392.86

Equipment (132,000/9.333%) 117,857.14

Input VAT 14,142.85

Cash or Accounts Payable 131,999.99
SOLUTION PROBLEM.2

1 Cash or Accounts Receivable 840,000.00

Sales 750,000.00
VAT Output Tax 90,000.00

Sales returns, allowances and discounts 9,821.43

VAT Output Tax 1,178.57
Cash or Accounts Receivable 11,000.00

Purchases 441,964.29
VAT Input Tax 53,035.71
Cash or Accounts Payable 495,000.00

Cash or Accounts Payable 8,960.00

VAT Input Tax 960.00
Purchase retunrs, allowances and discounts 8,000.00

2 Output Tax on Sales 90,000.00

Output Tax on Returns, allowances and discounts (1,178.70)
Net VAT Output Tax 88,821.30
Input Tax on Net Purchase (53035.71 -960) 52,075.71
Transitional Input Tax (125,000 x 2%) 2,500.00 54,575.71
VAT payable 34,245.59

3 VAT Output Tax 88,821.30

VAT Input Tax 52,075.71
Transitional Input Tax 2,500.00
VAT Payable 34,245.59
SOLUTION PROBLEM 3

1 Cash 1,320,000.00
Service Income 1,178,571.43
VAT Output Tax 141,428.57

Cash 165,000.00
Sales 147,321.43
VAT Output Tax 17,678.57

Cash 220,000.00
Service Income 196,428.57
VAT Output Tax 23,571.43

Outside Services 171,875.00

VAT Input Tax 20,625.00
Cash 192,500.00

Purchases 88,392.86
VAT Input Tax 10,607.14
Cash 99,000.00

2 Amount Received for labor repairs, repainting and overhaul

Amount Received for parts and paint used
Amount received as advances on unfinished jobs
Total Gross Receipts

VAT Output Tax (1,705,000/9.333)

Less: VAT Inout Taxes on:
Outside services paid (192,500/9.333) 20,625.73
Amount paid for parts and paints used (99,000/9.333) 10,607.14
VAT Payable for the month of July
1,320,000.00
165,000.00
220,000.00
1,705,000.00

182,679.22

31,232.87
151,446.35
SOLUTION PROBLEM 4.

1 Invoice cost of imported goods 1,500,000.00

Custom duties 30,000.00
Excise taxes 22,500.00
Total Landed Cost 1,552,500.00

Value-added tax on Importation (1,552,500 x 12%) 186,300.00

a Vat Output tax on Sales (2090,000/9.333) 223,936.57

Value-addded tax on Importation 186,300.00
VAT Payable for the month of May 37,636.57

b Vat Output Tax on Sales (1,320,000/9.333) 141,429.08

Value-added Tax on Importation 186,300.00
Excess VAT Input Tax ap
a (44,870.92)

2 a VAT Output Tax 223,936.57

VAT Input Tax 186,300.00
VAT Payable 37,636.57

b VAT Output Tax 141,429.08

VAT Input Tax 141,429.08

Note: VAT Input Tax will have a balance of P4,4870.92 after this entry.