Assignment-VAT On Sale of Goods or Properties
Assignment-VAT On Sale of Goods or Properties
Assignment-VAT On Sale of Goods or Properties
ASSIGNMENT 2
Directions:
PROBLEM SOLVING: Provide your solutions and final answer on a separate sheet of paper.
2. (15 points) The following data relates to the transactions of Villa Lina Company for the
month of November (amounts are gross of tax):
Sales 594,000
Sales returns and allowances 13,200
Payment of goods to creditors 27,500
Consignment sales 34,100
Goods out on consignment – 45 days 22,000
Goods out on consignment – 75 days 68,750
Distribution of goods as goodwill to employees 11,000
Purchases 253,000
5. (5 points) Tracing Company became subject to VAT effective January 1, 2019. The
records of its inventory on hand follow:
Goods purchased from VAT suppliers for resale 1,350,000
Goods purchased from nonVAT suppliers 654,320
Goods manufactured by the company 1,562,000
Goods in process 616,000
Goods purchased for processing 429,000
How much is the transitional input tax of Tracing Company?
Additional Notes: (I did not include this in the materials, so please study this also.)
This is included in the previous lesson, Exemptions from VAT)