Assuming that a Nissan Car Manufacturing Company sold 100 cars to the wholesale trader for OMR 7,500 each plus VAT.  The wholesale trader sold all the 100 cars to the retailer showroom for OMR 8,000 each plus VAT.  The retailer showroom realized  OMR 850,000 after selling all the 100 cars to the local customers plus VAT. Assume the rate of Value Added Tax (VAT) throughout in Oman is 5%. There Input tax credit available in Nissan Car Manufacturing Company account was OMR 42,500. ANSWER QUESTION NO 15 TO 18     Question 15   What will be the total tax burden by the consumers? a. OMR 85,000 b. OMR 42,500 c. OMR 40,000 d. OMR 47,500   Question 16   Which of the following statement will be correct for Nissan Car Manufacturer? a. Tax to be refunded from Government is OMR 5000 b. Tax to be payable to Government is OMR 37,500 c. Tax to be refunded from Government is OMR 42,500 d. Tax to be payable to Government is OMR 5000   Question 17   What will be the VAT payable by the wholesaler to Government? a. OMR 7500 b. OMR 40,000 c. OMR 2500 d. OMR 42,500 Clear my choice

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Assuming that a Nissan Car Manufacturing Company sold 100 cars to the wholesale trader for OMR 7,500 each plus VAT.  The wholesale trader sold all the 100 cars to the retailer showroom for OMR 8,000 each plus VAT.  The retailer showroom realized  OMR 850,000 after selling all the 100 cars to the local customers plus VAT. Assume the rate of Value Added Tax (VAT) throughout in Oman is 5%. There Input tax credit available in Nissan Car Manufacturing Company account was OMR 42,500.

ANSWER QUESTION NO 15 TO 18

 

 

Question 15

 

What will be the total tax burden by the consumers?
a.
OMR 85,000
b.
OMR 42,500
c.
OMR 40,000
d.
OMR 47,500
 

Question 16

 
Which of the following statement will be correct for Nissan Car Manufacturer?
a.
Tax to be refunded from Government is OMR 5000
b.
Tax to be payable to Government is OMR 37,500
c.
Tax to be refunded from Government is OMR 42,500
d.
Tax to be payable to Government is OMR 5000
 

Question 17

 

What will be the VAT payable by the wholesaler to Government?
a.
OMR 7500
b.
OMR 40,000
c.
OMR 2500
d.
OMR 42,500
Clear my choice

Question 18

 

What will be the input tax for the retailer showroom?
a.
OMR 2500
b.
OMR 40,000
c.
OMR 42,500
d.
OMR 7500
 

 

 

 
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