The following transactions were extracted from the books of Info Link Communications Ltd. for the month ended 30 April 2018. The company is registered for VAT. 2 April: Purchased goods from Mambo Enterprises on credit worth Sh.800,000. 2 April: Purchased office furniture for Sh.200, 000 from Excel Mart. 3 April: Sold goods worth Sh.60,000 to Ken Link Communications Ltd. On credit. 4 April: Purchased spare parts for motor vehicles worth Sh.300, 000. 5 April: Returned furniture worth Sh.80.000 to Excel Mart & was issued with a debit note of the same amount. 6 April: Goods worth Sh.120, 000 were found to be defective and Ken Link Communications Ltd., returned them. 9 April: Purchased goods worth Sh.2.400, 000 from Japan exclusive of import duty of 15% and VAT at the rate of 16%. 10 April: Sold goods for cash worth Sh.3, 200,000. 12 April: Exported goods worth Sh.4, 200,000 to Annex Enterprises Ltd., in Rwanda. 16 April: Paid catering expenses worth Sh.160, 000. 18 April: Imported goods worth Sh 600,000 from India exclusive of import duty of 25% & VAT at the rate of 16%. 20 April: Renovated the existing buildings at a cost ofSh.600, 000. 22 April: Paid rent and rates amounting to Sh.490,000. 24 April: Exported goods worth Sh.3, 400,000 to South Africa. 28 April: Sold goods worth Sh.880, 000 to Vista Communications Ltd. in cash. 29 April: Hired a taxi to transport staff and paid Sh.9,000 30 April: Paid the following expenses for the month of April 2018. Sh. Water bill 50,000 Salaries and wages 2,800,000 Telephone bill 38,000 Electricity bill 80,000 The above transactions are stated inclusive of VAT at the rate of 16% where applicable and unless otherwise stated. Required: The VAT payable by or refundable to info Link Communications Ltd., for the month of April 2018
The following transactions were extracted from the books of Info Link Communications Ltd. for the month ended 30 April 2018. The company is registered for VAT. 2 April: Purchased goods from Mambo Enterprises on credit worth Sh.800,000. 2 April: Purchased office furniture for Sh.200, 000 from Excel Mart. 3 April: Sold goods worth Sh.60,000 to Ken Link Communications Ltd. On credit. 4 April: Purchased spare parts for motor vehicles worth Sh.300, 000. 5 April: Returned furniture worth Sh.80.000 to Excel Mart & was issued with a debit note of the same amount. 6 April: Goods worth Sh.120, 000 were found to be defective and Ken Link Communications Ltd., returned them. 9 April: Purchased goods worth Sh.2.400, 000 from Japan exclusive of import duty of 15% and VAT at the rate of 16%. 10 April: Sold goods for cash worth Sh.3, 200,000. 12 April: Exported goods worth Sh.4, 200,000 to Annex Enterprises Ltd., in Rwanda. 16 April: Paid catering expenses worth Sh.160, 000. 18 April: Imported goods worth Sh 600,000 from India exclusive of import duty of 25% & VAT at the rate of 16%. 20 April: Renovated the existing buildings at a cost ofSh.600, 000. 22 April: Paid rent and rates amounting to Sh.490,000. 24 April: Exported goods worth Sh.3, 400,000 to South Africa. 28 April: Sold goods worth Sh.880, 000 to Vista Communications Ltd. in cash. 29 April: Hired a taxi to transport staff and paid Sh.9,000 30 April: Paid the following expenses for the month of April 2018. Sh. Water bill 50,000 Salaries and wages 2,800,000 Telephone bill 38,000 Electricity bill 80,000 The above transactions are stated inclusive of VAT at the rate of 16% where applicable and unless otherwise stated. Required: The VAT payable by or refundable to info Link Communications Ltd., for the month of April 2018
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
The following transactions were extracted from the books of Info Link Communications Ltd. for the month ended 30 April 2018. The company is registered for VAT.
2 April: Purchased goods from Mambo Enterprises on credit worth Sh.800,000.
2 April: Purchased office furniture for Sh.200, 000 from Excel Mart.
3 April: Sold goods worth Sh.60,000 to Ken Link Communications Ltd. On credit.
4 April: Purchased spare parts for motor vehicles worth Sh.300, 000.
5 April: Returned furniture worth Sh.80.000 to Excel Mart & was issued with a debit note of the same amount.
6 April: Goods worth Sh.120, 000 were found to be defective and Ken Link Communications Ltd., returned them.
9 April: Purchased goods worth Sh.2.400, 000 from Japan exclusive of import duty of 15% and VAT at the rate of 16%.
10 April: Sold goods for cash worth Sh.3, 200,000.
12 April: Exported goods worth Sh.4, 200,000 to Annex Enterprises Ltd., in Rwanda.
16 April: Paid catering expenses worth Sh.160, 000.
18 April: Imported goods worth Sh 600,000 from India exclusive of import duty of 25% & VAT at the rate of 16%.
20 April: Renovated the existing buildings at a cost ofSh.600, 000.
22 April: Paid rent and rates amounting to Sh.490,000.
24 April: Exported goods worth Sh.3, 400,000 to South Africa.
28 April: Sold goods worth Sh.880, 000 to Vista Communications Ltd. in cash.
29 April: Hired a taxi to transport staff and paid Sh.9,000
30 April: Paid the following expenses for the month of April 2018.
Sh.
Water bill 50,000
Salaries and wages 2,800,000
Telephone bill 38,000
Electricity bill 80,000
The above transactions are stated inclusive of VAT at the rate of 16% where applicable and unless otherwise stated.
Required:
The VAT payable by or refundable to info Link Communications Ltd., for the month of April 2018
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