E K Kanoo is registered trader for VAT with NBR of Ministry of Finance of Bahrain. EKK is dealing with the supplies which are standard rated @5%. EKK is supposed to submit VAT returns on quarterly basis. Following are the transactions of 2020. July 10 Purchased goods list price of BD 100,000 from Ahmed. Trade Discount 20%. Credit Term was 1/30, n/60. July 13 Returned goods list price of BD 10,000 to Ahmed. July 14 Purchased Stationery for BD 1000. July 16 Purchased zero rated items for BD 50,000. July 26 Sold goods list price of BD120,000 to Zahra. Trade discount was 10%. Credit Term was 1/30, n/60. August 8 Purchased goods list price of BD 20,000. Input Credit cannot be claimed on it as it was exempt item. Trade discount was 10%. August 29 Sold goods list price of BD 40,000 to Hamdan on cash. Trade Discount was 5%. December31 Sold goods list price of BD 60,000 on credit to Reem. Trade Discount 10%. Assume that input credit claimed in books of account dated September 30, 2020 and VAT return is submitted on October 25, 2020 with VAT payment or refunded. Instructions: Prepare the Journal entries for above transactions, date wise. Answer VAT Claimed VAT Payable to NBR
E K Kanoo is registered trader for VAT with NBR of Ministry of Finance of Bahrain. EKK is dealing with the supplies which are standard rated @5%. EKK is supposed to submit VAT returns on quarterly basis. Following are the transactions of 2020. July 10 Purchased goods list price of BD 100,000 from Ahmed. Trade Discount 20%. Credit Term was 1/30, n/60. July 13 Returned goods list price of BD 10,000 to Ahmed. July 14 Purchased Stationery for BD 1000. July 16 Purchased zero rated items for BD 50,000. July 26 Sold goods list price of BD120,000 to Zahra. Trade discount was 10%. Credit Term was 1/30, n/60. August 8 Purchased goods list price of BD 20,000. Input Credit cannot be claimed on it as it was exempt item. Trade discount was 10%. August 29 Sold goods list price of BD 40,000 to Hamdan on cash. Trade Discount was 5%. December31 Sold goods list price of BD 60,000 on credit to Reem. Trade Discount 10%. Assume that input credit claimed in books of account dated September 30, 2020 and VAT return is submitted on October 25, 2020 with VAT payment or refunded. Instructions: Prepare the Journal entries for above transactions, date wise. Answer VAT Claimed VAT Payable to NBR
E K Kanoo is registered trader for VAT with NBR of Ministry of Finance of Bahrain. EKK is dealing with the supplies which are standard rated @5%. EKK is supposed to submit VAT returns on quarterly basis. Following are the transactions of 2020. July 10 Purchased goods list price of BD 100,000 from Ahmed. Trade Discount 20%. Credit Term was 1/30, n/60. July 13 Returned goods list price of BD 10,000 to Ahmed. July 14 Purchased Stationery for BD 1000. July 16 Purchased zero rated items for BD 50,000. July 26 Sold goods list price of BD120,000 to Zahra. Trade discount was 10%. Credit Term was 1/30, n/60. August 8 Purchased goods list price of BD 20,000. Input Credit cannot be claimed on it as it was exempt item. Trade discount was 10%. August 29 Sold goods list price of BD 40,000 to Hamdan on cash. Trade Discount was 5%. December31 Sold goods list price of BD 60,000 on credit to Reem. Trade Discount 10%. Assume that input credit claimed in books of account dated September 30, 2020 and VAT return is submitted on October 25, 2020 with VAT payment or refunded. Instructions: Prepare the Journal entries for above transactions, date wise. Answer VAT Claimed VAT Payable to NBR
E K Kanoo is registered trader for VAT with NBR of Ministry of Finance of Bahrain. EKK is dealing with the supplies which are standard rated @5%. EKK is supposed to submit VAT returns on quarterly basis. Following are the transactions of 2020.
July 10
Purchased goods list price of BD 100,000 from Ahmed. Trade Discount 20%. Credit Term was 1/30, n/60.
July 13
Returned goods list price of BD 10,000 to Ahmed.
July 14
Purchased Stationery for BD 1000.
July 16
Purchased zero rated items for BD 50,000.
July 26
Sold goods list price of BD120,000 to Zahra. Trade discount was 10%. Credit Term was 1/30, n/60.
August 8
Purchased goods list price of BD 20,000. Input Credit cannot be claimed on it as it was exempt item. Trade discount was 10%.
August 29
Sold goods list price of BD 40,000 to Hamdan on cash. Trade Discount was 5%.
December31
Sold goods list price of BD 60,000 on credit to Reem. Trade Discount 10%.
Assume that input credit claimed in books of account dated September 30, 2020 and VAT return is submitted on October 25, 2020 with VAT payment or refunded.
Instructions:
Prepare the Journal entries for above transactions, date wise.
Answer
VAT Claimed
VAT Payable to NBR
Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.
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