Mr. A sold goods worth P56,000 (inclusive of vat) to Mr. B on account. Mr. B sold the same goods to Mr. C at a total invoice price of P67,200. All of them are VAT registered taxpayers.How much is the amount of sales to be recorded on the accounting books of Mr. C?If the this is the only transaction of Mr. C for the period, how much is Mr. C’s vat payable?

The question is related to the taxation. The present rate of vat is 12%. The tax is equivalent to a…

Answered: Mr. A sold goods worth P56,000…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Mr. A sold goods worth P56,000 (inclusive of vat) to Mr. B on account. Mr. B sold the same goods to Mr. C at a total invoice price of P67,200. All of them are VAT registered taxpayers.

How much is the amount of sales to be recorded on the accounting books of Mr. C?
If the this is the only transaction of Mr. C for the period, how much is Mr. C’s vat payable?

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