Accounting for VAT

Accounting forVAT

09

Solution- 1VAT calculation for Merry Ltd and In Ltd

Cost ofgoodsold

VAT

Supplier to Merry Ltd (Merry Ltd pays VAT TK. 45,000 But recovered it)

3,00,000

Value added By Merry 2,00,000

30,000

Sales to In Ltd (Outlet Ltd pays VAT TK. 45,000 But recovered it)

5,00,000

Value added By In Ltd 1,50,000

22,500

Sales to B Ltd (B Ltd pays VAT TK. 84,783 But recovered it)

6,50,000

VAT calculation for Terry Ltd and Awal LtdCost of

goodsold

VAT

Supplier to Terry Ltd (Merry Ltd pays VAT TK. 37,500 But recovered it)

2,50,000

Value added By Terry 1,00,000

15,000

Sales to Awal Ltd (Awal Ltd pays VAT Tk52,500 But recovered it)

3,50,000

Value added By Awal Ltd 1,00,000

15,000

Sales to Customers Ltd (Customers pays VAT TK. 77,500 But recovered it)

4,50,000

VAT calculation for Herry Ltd and R.S LtdCost ofgood sold

VAT

Supplier to Herry Ltd (Herry Ltd pays VAT TK. 30,000 But recovered it)

2,00,000

30,000

Value added By Herry 1,20,000

Sales to R.S Ltd (R.S Ltd pays VAT TK. 41,739 But recovered it)

3,20,000

41,739

Value added By R.S Ltd 1,50,000

Sales to Customers Ltd (Customers pays VAT TK. 48,261 But recovered it)

3,70,000

48,261

VAT calculation for Rose flower mills and Fu-wang brancheValue of goods sold TK.

VAT TK.

Supply to Rose flower mills (And Rose flower mills pays Vat TK. but recovered it)

4,00,000

60,000

Value added by Rose flower mills. 1,20,000

Sales to Fu-wang branche factory (Fu-wang branche factory pays TK. but VAT recovered it)

5,20,000

78,000

Value added by Fu-wang branche factory 1,30,000

Sales to Tallue Spening Mills. (Tallue Spening Mills.. pays TK. VAT and cannot record it.

6,50,000

97,500

Instruction-2

In the books of Rose flower mills Journal Entry.1. Purchases 4,00,000 VAT current A/C 60,000

Cash 4,60,000

2. Cash 5,98,000Sales 5,20,000VAT current A/C 78,000

3. VAT current A/C 18,000Cash 18,000

In the books of Fu-wang branche factory Journal Entry.

1. Purchases 5,20,000 VAT current A/C 78,000

Cash 5,98,000



In the books of Tallue Spening Mills.1. Food expanse 6,50,000 Cash 6,50,000

Solution- 2Instruction - 1

VAT calculation for Tushar flower mills and Awal breadValue ofgoods

sold TK.

VATTK.

Supply to Tushar flower mills (And 3,00,000 39,130

flower mills pays Vat TK. but recovered it)Value added by Tushar flower mills. 40,000Sales to Awal bread (Awal bread factory pays TK. but VAT recovered it)

3,40,000 44,348

Value added by Awal bread factory 60,000Sales to Rohan Spanning mills(Rohan Spanning mills pays TK VAT and cannot record it.

4,00,000 52,174

Instruction-2

In the books of Tushar flower mills Journal Entry.1. Purchases 3,00,000 VAT current A/C 39,130

Cash 3,39,130



In the books of Awal bread factory Journal Entry.

1. Purchases 3,40,000 VAT current A/C 44,348

Cash 3,84,348



In the books of Rohan Spanning mills Journal Entry.1. Food expanse 4,00,000 Cash 4,00,000

Solution- 03Instruction - 1 VAT calculation for Asadul Sugar mills Corporation and Tushar

flower mills.Value ofgoods

sold TK

VATTK.

Supply to Asadul Sugar mills (And Sugarmills pays Vat TK. but recovered it)

5,00,000 75,000

Value added by Tushar flower mills. 1,50,000Sales to B.M Sweet factory (B.M Sweet factory pays TK. but VAT recovered it)

6,50,000 97,500

Value added by B.M Sweet factory 70,000Sales to Rony Company Ltd. ( Rony Company Ltd. pays TK. VAT and cannot record it.

7,20,000 1,08,000

Instruction-2

In the books of Asadul Sugar mills Journal Entry.1. Purchases 5,00,000 VAT current A/C 75,000

Cash 5,75,000



In the books of B.M Sweet factory Journal Entry.

1. Purchases 6,50,000VAT current A/C 97,500

Cash 7,47,500

2. Cash 8,28,000Sales 7,20,000VAT current A/C 1,08,000


In the books of Rony Company Ltd Journal Entry.

Solution - 4Instruction -1

Awal CompanyJournal Entry

Date

Particulars Dr. (Tk.)

Cr. (Tk.)

01 Purchases VAT current A/C (70,000-3/23)

Account payable

60,8709,130

70,000

02 Account receivable Sales VAT current A/C

55,00047,82

67,174

03 Gas Expenses Cash

3,5003,500

04 Wages & salaries ExpenseCash

7,0007,000

05 Account payable VAT current accountPurchase

4,000522

3,47406 VAT current A/C

Cash20,000

20,000

07 Sales returns & AllowanceVAT Payable Account Receivable

2,274226

2,500

VAT Current AccountDr. Cr.

Date

Particulars TK. Date

Particulars TK.

01 Purchase (input VAT)

9,330

02 Sales(output VAT) 7,174

06 Cash 20,000

05 Purchase return 522

07 Sales return 226

21860

29,556

29,556

Solution- 05Rose CorporationJournal Entry

Date Particulars Post

Dr. (Tk.)

Cr. (Tk.)

1 Account receivable sales VAT current A/C

90,000

20,000

700

15,000

30,000

80,00012,000

6,750

30,000

78,26111,739

17,0003,000

700

15,000

30,000

92,000

6,750

30,000

2 Account Payable Purchase returns & Allowances VAT current A/C

3 Water Expense Cash

4 Wages & salaries Expense Cash

5 Sales returns & allowanceA/R

6 Purchases VAT current A/C Account payable

7 Utilities Expense Cash

8 VAT current A/C Cash

VAT Current Account Dr. Cr.

Date 2008

Particulars TK. Date2008

Particulars TK.

6 Purchase (input VAT

12,000

1 Sales (output) 11,739

8 Cash 30,000

2 Account payable

3,000

.

27,261

42,000

42,000

Solution- 06R.R. CorporationJournal Entry

Date 2011

Particulars Post

Dr. (Tk.)

Cr. (Tk.)

May-1 Account receivable sales VAT current A/C

57,500

93,150

77,625

20,000

19,000

7,000

50,0007,500

81,00012,150

67,50010,125

20,000

19,000

7,000

May -7

Account receivable sales VAT current A/C

May- 10


May -13

Cash VAT current A/C

May -17

VAT current A/C Cash

May -21

Merchandise Expense Cash


Date Particulars TK. Date2008

Particulars TK.

May-17

Cash 19,000

May -1 Sales (output)

7,500

May-30

Balance 30,775

May -7 Sales (output)

12,150

May May -10

Sales (output)

10,125

May .

May -13

20,000

49,775

49,775

Solution- 7Asadul Corporation

Journal EntryDate 2011

Particulars Post

Dr. (Tk.)

Cr. (Tk.)

July -1

Purchases VAT current A/C Account payable

40,0006,000

70,000

40,250

63,0009,450

62,100

18,000

5,000

15,000

46,000

70,000

35,0005,250

72,450

54,0008,100

18,000

5,000

15,000

July -3

salaries Expense Cash

July -7


July -11


July -19


July -22


July -25


45,0006,750

51,750

July -29

Merchandise expenses Cash

July -30


VAT Current AccountDr. Cr.Date 2010

Particulars TK. Date Particulars

TK.

July -1July -11July -22July –30

Purchase (input VAT)Purchase (input VAT)CashPurchase (input VAT)

6,0009,45018,0006,75040,200

July – 7July –19July – 25July – 31

Sales (output)Sales (output)CashBalance c/d

5,2508,1005,000

21,85040,200

Solution- 08Rose Cosmetics Ltd.

Journal EntryDate Particulars Ref

.Dr. (Tk.)

Cr. (Tk.)

a. Account receivable sales VAT current A/C

7,00,000

4,25,000

75,000

70,000

90,000

5,95,000

1,05,000

5,00,000

70,000

b. Purchases VAT current A/C Account payable

c. Wages & salaries Expense Cash

d. Equipments Cash

e. Other Expense

Cash

40,00090,000

40,000

VAT Current AccountDr. Cr.

Date 2008


Particulars TK.

b Purchase (input VAT

75,000

a. Sales (output) 1,05,00

Balance 30,000

.

1,05, 00

1,05,00

Solution- 09R.R. CompanyJournal Entry

Date Particulars Ref Dr. (Tk.)

Cr. (Tk.)

a. Purchases VAT current A/C Account payable

4,25,000

75,000

4,00,000

30,000

3,00,000

5,00,000

3,40,00060,000

25,5004,500

3,00,000

2,00,000

b. Account receivable sales VAT current A/C

c. Account receivable sales VAT current A/C

d. Wages & salaries Expense Cash

e. Furniture Cash

2,00,000

2,00,000

2,00,000f. Equipments

Cash


Date 2008


Particulars TK.

a Purchase (input VAT

75,000

b. Sales (output) 60,000

c. Sales (output) 4,500 .

Balance 10,500

75,000

75,000

Solution- 10Nktel Corporation

Journal EntryDate 2011

Particulars Post

Dr. (TK.)

Cr. (TK.)

May -1

Purchases VAT current A/C (370,000-3/23) Account payable

3,21,740

48,260

8,05,000

5,00,000

75,000

17,500

3,70,000

7,00,000

1,05,000

5,75,000

May -9


May-11

Purchases VAT current A/C (5,00,000-3/23) Account payable

30,000

3,45,000

20,000

30,000

30,000

17,500

30,000

3,00,000

45,000

20,000

30,000

30,000

May-13

Gas Expenses Cash

May-17

Wages & salaries Expense Cash

May-23


May-25

Other Expenses Cash

May-27


May-29



Date2010

Particulars TK. Date Particulars TK.

M-1M-11M-29

Purchase (input VAT)Purchase (input VAT)CashBalance c/d

48,260

75,000

30,000

26,740

1,80,000

M-9M-23M-27

Sales (output)Sales (output)Cash

1,05,000

45,00030,000 .1,80,0

00

Solution- 11Dell CorporationJournal Entry

Date 2011

Particulars Post

Dr. (TK.)

Cr. (TK.)

Feb -1


3,82,500

67.500

1,95,652

29,348

1,70,000

50,000

2,50,000

40,000

3,50,000

20,000

4,50,000

2,25,000

1,44,50025,500

50,000

2,17,39132,609

40,000

2,97,50052,500

20,000

Feb -3

Purchases VAT current A/C (2,25,000-3/23) Account payable

Feb -7


Feb- 14


Feb-16


Feb-19

Wages & salaries Expense Cash

Feb-23


Feb-27



Date 2008


Particulars TK.

Feb - 1

Purchase (input VAT

67,500

Feb - 7

Sales (output)

25,500

Feb - 3

Purchase (input VAT

29,384

Feb - 16

Sales (output)

32,609

Feb -14

Cash 50,000

Feb -23

Sales (output)

52,500

Feb -27

Cash 20,000

.

Feb -28

Balance 15,875

1,46,884

1,46,884

Solution- 12VAT Current account

CU CUBalance B/dCash Paid to govt.Cash Paid to govt. Other expense (Input tax -2,00,000*15)Purchase(Input tax -15,00,000*15)

Balance B/D

35,00080,00040,000

30,000 2,25000

4,10,000

25,000

Output tax (25,00,000*15%)Cash received from govt.Balance C/D

3.75,000

10,000

25,000

.4,10,000

Therefore there is a balance prepaid to govt. 0f Cu Tk.25,000 which is shown on the balance sheet as a current assets.


CU CUBalance B/dInput test (purchase)Cash Paid to govt. (40,000+60,000) Input test (other expense(1,50,000*15)Balance C/D

45,0001,20,0

00

1,00,000

22,50023,000 3,10,0

Output test (20,00,000*15%)Cash received from govt.

3.00,00010,000

.

00 Balance B/D 3,10,00023,00

0Therefore there is a balance owing to govt. 0f Cu Tk.23,000 whichis shown on the balance sheet another Payable


CU CUInput test purchase(10,00,000*3/23)Cash Paid to govt. Input test (other expense(1,10,000*3/23)

Balance B/d

1,30,435

60,000

14,3482,04,7

831,89,7

83

Balance B/dBalance C/D

15,000

1,89,783

.

.20478

3Therefore there is a balance prepaid to govt. Tk.1,89,783 which is shown on the balance sheet as an current assets


CU CUInput test purchase(10,00,000*3/23)Cash Paid to govt. Input test (other expense(20,000*3/23)

Balance B/d

1,30,435

50,000

2,6091,83,0

441,71,0

44

Balance B/d

Balance C/D

12,000

1,71,044

. 1,83,044

Therefore there is a balance prepaid to govt. Tk.1,71,044 which is shown on the balance sheet as an current assets

Solution - 16Sales day book

Date Invoice/credit notenumber

Customer TotalCU

VATCU

SaleCU

July -1

706 Seed Co. 35,000 5,250 29,750

July -2

707 Poy 45,000 6,750 38,250

July -19

708 Raju 55,400 7,313 41,439

July -26

709 Joney 70,000 10,500 59,500


Date Invoice/creditnotenumber

Customer TotalCU

VATCU

SaleCU

June - 1 303 Rakib 9,000 1,215 6,885June - 15

304 CW 30,000 4,500 25,500

June - 22

305 Sabina 50,000 7,500 42,500

June - 29

306 CW(R. S.Co)

40,000 6,000 34,000

Solution - 18Purchase day book

Date Invoice/credit note number

Supplier TotalCU

VATCU

PurchaseCU

March - 1

210 K.D 80,000 12,000 68,000

March - 211 Awal .Com 65,000 9,262 52,488

13March - 20

212 Cw 40,000 5,700 32,300

March - 24

Rahim 90,000 12,825 72,675



Supplier TotalCU

VATCU

PurchaseCU

Dece - 1 1107 Z.A.D 30,000 4,500 25,500Dece -9 1108 Awal .Com 85,000 10,200 74,800Dece - 14

1109 Cw 20,000 3,000 17,000

Dece - 28

1110 Rai Com 43,000 6,,450 36,550

Solution - 20Cash Receive book

Date Narrative TotalReceipts

CU

VATCU

Receivable CU

CashSalesCU

OtherCU

May -1

Cash Sales (i) 300 45 255

Receivable Ray (ii)

470 470

Loan : Mas Doner Com (iii)

19,000 19,000

Receivable Reen(iv)

870 870

Receivable (v) 590 88 502



VATCU

Receivable CU

CashSales

Other

CU CU CUMay -1

Receivable Reed(i)

230 230

Sales to non-Current assets (ii)

400 400

Cash (iii) 7,000 7000Loan : D. DonerCom (iv)

3,500 35,000


Solution - 22Cash Payment book

Date Narrative TotalPayment

CU

VATCU

Payable CU

PettyCashCU

OtherCU

Dec-1 Payable POP (i) 360 360Payable Dove (ii)

760 760

Water bill (iii) 370 55 315Gas bill (iv) 382 57 325Petty Cash (v) 100 100Wages Payable (vi)

35,000 35,000



CU

VATCU

Payable CU

PettyCashCU

OtherCU

Aug-1 Payable Tom Com (i)

170 170

Telephone bill (ii)

186 26 160

Boss Com (iii) 1,700 1,700Payable Dew (iv) 420 420

Wages Payable (v)

7,000 7,000

Petty Cash (vi) 300 300



Customer TotalCU

VATCU

SaleCU

July - 1 706 Seed Co. 35,000 5250 29,750July -2 707 Poy 45,000 6750 38,250July - 19

708 Raju 55,400 7313 41,439

July - 26

709 Joney 70,000 10,500 59,500

Solution- 25Sales day book


Customer TotalCU

VATCU

SaleCU

June - 1 303 Rakib 9,000 1,215 6,885June - 15

304 CW 30,000 4,500 25,500

June - 22

305 Sabina 50,000 7,500 42,500

June - 29

306 CW(R.S.Co) 40,000 6,000 34,000


Date Invoice/credit note

Supplier Total CU

VAT CU

PurchaseCU

numberMarch - 1

210 K.D 80,000 12,000 68,000

March - 13

211 Awal .Com 65,000 9,262 52,488

March - 20

212 Cw 40,000 5,700 32,300

March - 24

Rahim 90,000 12,825 72,675



Supplier TotalCU

VATCU

PurchaseCU

Dece - 1 1107 Z.A.D 30,000 4,500 25,500Dece -9 1108 Awal .Com 85,000 10,200 74,800Dece - 14

1109 Cw 20,000 3,000 17,000

Dece - 28

1110 Rai Com 43,000 6,450 36,550

Sales day bookDate Invoice/

credit note number

Customer Total CU

VAT CU

SaleCU

June - 1 303 Rakib 9,000 1,215 6,885June - 15

304 CW 30,000 4,500 25,500

June - 22

305 Sabina 50,000 7,500 42,500

June - 29

306 CW(R.S.Co) 40,000 6,000 34,000


Date Narrative Total VAT CU Receiv Cash Other

Receipts CU

ableCU

SalesCU

CU

May -1

Cash Sales (i) 300 45 255

Receivable Ray (ii)

470 470

Loan : Mas Doner Com (iii)

19,000 19,000

Receivable Reen(iv)

870 870




CU

VATCU

Receivable CU

CashSalesCU

OtherCU

May -1

Receivable Reed(i)

230 230

Sales to non-Current assets (ii)

400 400

Cash (iii) 7000 7000Loan : D. DonerCom (iv)

3500 35000




CU

VATCU

Payable CU

PettyCashCU

OtherCU

Dec-1 Payable POP (i) 360 360Payable Dove (ii)

760 760

Water bill (iii) 370 55 315Gas bill (iv) 382 57 325Petty Cash (v) 100 100Wages Payable 35,000 35,00

(vi) 0


Date Narrative TotalPayment CU

VATCU

Payable CU

PettyCashCU

OtherCU

Aug-1 Payable Tom Com (i)

170 170

Telephone bill (ii)

186 26 160

Boss Com (iii) 1,700 1,700Payable Dew (iv) 420 420Wages Payable (v)

7,000 7,000

Petty Cash (vi) 300 300

Solution – 32Purchase day book


Supplier TotalCU

VATCU

PurchaseCU

Feb - 3 Able Company

1,750 262 2,012

Feb – 5 BestCompany

1,965 295 2260

Feb - 9 625 94 719Feb - 14 1985 298 2283Feb – 16 485 73 558Feb - 17 (85) (13) (98)Feb –18 (130) (20) (150)

Sales day book

Date Invoice/creditnote

Customers TotalCU

VATCU

SaleCU

numberFeb - 2 711 Dale Dent 8,000 1,200 9,200Feb - 4 712 Gary glen 1,250 187 1,437Feb – 11 Carl Cole 1,650 247 1,897Feb - 24 714 Gary glen 835 125 960Feb - 26 715 Carl Cole 715 107 822



Supplier TotalCU

VATCU

PurchaseCU

Feb - 1 Hardy Company 10,950 1,428 9,522Feb – 5 4 Old Company 250 33 217Feb - 11 Best Company 5,150 672 4,478Feb – 18 Flint Company 46,000 6,000 40,000Feb – 21 Best Company 7,750 1,010 6,740Feb – 22 19 Hardy Company 5,500 717 4,783Feb – 23 Flint Company (6,000) (782) (5218)


creditnotenumber

Customers TotalCU

VATCU

SaleCU

Feb - 2 711 Ben blue 7,650 998 6,652Feb - 3 712 John moss 20,500 2,674 17826Feb - 9 Ben blue (650) (85) (565)Feb -10 713 Fred Gage 64,050 8,355 55,695Feb -27 715 John moss 89,500 11,674 77,826Feb -28 716 Fred gage 61,850 8,067 53,783

VAT current accountDate Accounts TK.(Dr) TK.

(Cr)Balance

Feb -1 1,428 1,428Feb -2 998 430Feb -3 2,674 (2,244)Feb -8 5,000 2,756Feb -9 (85) 2,841Feb -10 8,355 (5,514)Feb -11 672 (4,842)Feb-15 15,710 (20,552)Feb-18 6,000 (14,552)Feb-21 1,010 (13,542)Feb-22 717 (12,825)Feb-23 (782) (13,607)Feb-25 9,000 (4,607)Feb-27 11,674 (16,281)Feb-28 8,067 (24,348)Feb-28 1,941 (26,289)



Supplier TotalCU

VATCU

PurchaseCU

Feb -2 10,795 1,408 9,387Feb – 3 8,085 1,055 7,030Feb - 5 Hill

Company10,635 1,387 9,248

Feb – 6 (4500) (587) (3913)Feb – 7 (6000) (782) (5218)Feb - 14 West

Company 1485 194 1291

Feb - 17 WestCompany

1,850 241 1,609

Feb - 18 HillCompany

4,015 524 3,491

Sales day book


Customers TotalCU

VATCU

SaleCU

Feb - 2 911 Fred Cole 9,000 1,174 7,826Feb - 4 9012 Ray deal 1,400 183 1,217Feb - 11 Ted Barr 13500 1761 11,739Feb - 16 Ted Barr (9000) (1,174) (7826)Feb - 18 914 Fred Cole 10,100 1,317 8,783Feb - 26 915 Ted Barr 10,125 1,320 8,805Feb - 27 916 Ray deal 19,085 2,489 16,596

Journal Date Accounts Re

fTK. TK.

Feb - 7

VAT Current account Cash

60006000

Feb - 14

wages expenses Cash

90359035

Feb - 14

Cash Sale VAT Current account

90,000 78,26

011,740

Feb - 14

VAT Current account Cash

11000 11000

Feb - 21

CashVAT Current account

3,000 3,000

Feb - 28

Cash Sale VAT Current account

90,440 78,64

411,796

VAT Current Account

Date Accounts TK.(Dr) TK. (Cr)

Balance

Feb -2 1,408 1,408

Feb -2

1,174 234

Feb -3 1,055 1289Feb -4 183 1,106Feb -5 1387 2,493Feb -6 (587) 1,906Feb -

76000 7,906

Feb -7

(782) 7,124

Feb -11

(1,055) 8,179

Feb -14

194 8,373

Feb -14

11,796 20,169

Feb -14

11000 31,169

Feb -16

(1,174) 32,343

Feb -17

241 32,584

Feb -18

1,317 31,267

Feb -18

524 31791

Feb -21

3,000 28,791

Feb -26

1,320 27,471

Feb -27

2,489 24,982

Feb -28

11,796 13,186



Supplier Total CU

VAT CU

PurchaseCU

sep -2

Thompson suppliers

30,000 4,500 25,500

Sep -3

Franklin office suppliers

7,500 1,125 6,375

sep -6

Jackson 10,200 1,330 8,870

sep -17

Thompson suppliers

3,300 4,30 2,870

sep -28

Franklin office suppliers

75 10 65


creditnotenumber

Customer TotalCU

VATCU

SaleCU

Sep - 4

J.K. Allred 30,500 3,978 26,522

sep - 5

N.M snyder 10,750 1,402 9,248

sep - 8

T.S 20,030 3,005 17,025

sep - 12

M.W. Scavely 40,050 6,008 34,042

sep - 14

C.N. Anderson 7,080 923 6,157

sep - 18

D.W. Landale 10,000 1,304 8,696

sep - 20

Thompson suppliers

1,500 196 1,3-004

sep - 24

N.M snyder 20,050 3,008 17,042

VAT Current accountDate Accounts TK.(Dr) TK.

(Cr)Balance

Sep – 2

4500 4,500

Sep – 3

1,125 5,625

Sep – 4

3,978 1,647

Sep – 5

1,402 245

Sep – 6

1,330 1,575

Sep – 8

3,005 (1,430)

Sep – 12

6,008 (7,438)

Sep – 14

923 (8,361)

Sep – 17

430 (7,931)

Sep – 18

1,304 (9,235)

Sep – 20

196 (9,431)

Sep - 24

3,008 (12,439)

Sep - 28

10 (12,429)

Date post:	30-Jan-2023
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Accounting for VAT

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