PROBLEMS 2-4. Mr. Aisa VAT taxpayer in merchandising business. He makes sales of his goods under different terms of payment by the buyer. There are cash sales, installment sales, open account sales and consign- ment sales. In a taxable month, he had the follow- ing data on sales, VAT not included. Cash sales 1,000,000 Open account sales 2,000,000 Installment sales ; 3,000,000 Consignment sales (at suggested retail price): 0 - 60 days (on which there was a remittance from the consignee on a sale of P500,000) 2,500,000 61 — 120 days old 1,800,000 Sales retums and allowances: On cash sales 100,000 On open account sales 200,000 On installment sales 300,000 On consignment sales, 61 — 120 days old 200,000 Discounts availed of under terms in the invoices on open account sales, 2/10, /30 100,000 How much was the output VAT on his sales of the month? 2-2. Mr. B is a VAT taxpayer. He had the. following data for a month, VAT not included: Sales e P 800,000 Purchase of goods sold: From VAT suppliers 200,000 From non-VAT suppliers 120,000 Operating expenses 300,000 How much is the value-added tax payable for the month? How much was the net income for the month? 2-3. C Co. is a manufacturing concern. It had ‘the fol- lowing data for a month, VAT not included: Net sales P1,000,000 Cost of goods manufactured and sold (40% of the cost of which is on payment to VAT suppliers of raw materials and services) 400,000 : Cost of office supplies purchased from VAT sup- 10,000 pliers ‘ How much was the value-added tax payable? ‘A Study on Business Taxes and Transfer Taxes (247. ss I .I.99)99 2s Scanned with CamScannerithad the following data ™ T trader. ar ded: ‘ . D Co. is af VAT not inclu month, Sales ae Coa as or goods from VAT. suppliers Purchases of goods from non-VAT See Purchases of services from VAT oe 1 ais Purchases of services from non-' pI ie ees : Salaries of employ’ veri var oops VAT supplier Purchases of supplies Purchase of a fixed asset from a with a life of 2 years How much was the value-added tax pa! is ler 2-5. The taxpayer is 2 real estate deal Consideration on the sale, per deed of sale (at fair market value) n the date of sale \ Cash payment o1 Output value added tax? 2-6. The taxpayer is a real estate dealer Consideration on the sale, per deed of sale Zonal value ft Fair market value in the assessment rolls Payments, as follows: June 5, 2018 (date of sale) December 5, 2018 dune 5, 2019 December 5, 2019 Value-added tax shown in the deed of sale? Output value-added tax on June 5, 2018 col- lection? 2-7. The 'taxpayer is areal estate dealer Consideration on the sale, per. deed of sale able? Zonal value Fair market value in the assessment rolls. Payments, as follows: May 5, 2018 (date of sale) November 9,'2018 { May 5, 2019 November 5, 2019 Value-added tax shown in the deed of sale? Output value-added tax on May 5, 2018 col- lection? 2-8. The taxpayer is a real estate dealer A Study on Business Taxes and Transfer Taxes 2,000,000 600,000 200,000 10,000 5,000, 3. 8 250,000 | 5,000 7 800,000 P5,000,000 P5,000,000 P4,000,000 4,200,000 3,500,000 “600,000 500,000 1,500,000 4,500,000. P4,000,000 4,200,000 4,500,000 500,000 500,000 1,500,000 4,500,000 ape oe 218 Scanned with CamScanner01 &° sideration on the sale, per deed of sale Fair market vaiue in’th Payments, as follows: Pril 5, 2018 (dat October 5, 2018" se April 5, 2019 Octaber 5, 2019 Output value-added tax on April lection? pril 5, 2018 col. '@ assessment rolls 2-9. Z Co. is a manufar cooking oils. It hat VAT not include Sales Purchases from farmers: ' Of coms Of vegetables Purchases from VAT ‘suppliers: Of paper labels Others 2 Purchases of plastic containers from VAT ‘sup- pliers, Purchases of machine parts from non-VAT sup- plier How much was the value-added tax payable for the month? icturer of corn and vegetable id the following data ina month, 2-10. Give the journal entries: i if ‘a) On a purchase for cash, VAT not included, of i Ona sale for cash, VAT not included, of (c). On the recognition of the value-added tax payable of and Transfer Taxes “A Study on Business Taxes ‘6,000,000 5,200,000 5,000,000 750,000 750,000 2,250,000 2,250,000 P 900,000 200,000 220,000 5,000 500 40,000 80,000 P60,000 80,000 20,000 2-19 Scanned with CamScannerPROBLEMS 3-4. The X Co. is a holder of franchi lise to operate transportation units by fand from point ie pont in the Philippines. It had the. following data for a month, any tax not included: * Gross receipts from tran: 1,000,000 ‘ 2,000,000 nsporting cargoes 300,000 Payments to VAT Suppliers an Soren orting passenger 700,000 Value-added tax payable? on cr 3-2.The Y Co. is a common carrier with air and sea, transportation units, transporting cargoes and Passengers from point to Point in the Philippines. Ithad the following data ina month, any tax not included: Gross receipts: For transporting cargoes For transporting Passengers Payments to VAT suppliers of materials and service providers 3,000,000 Payments to non-VAT suppliers of materials 500,000 Value-added tax payable? 3,000,000 4,000,000 3-3, The Z Co. is a common carrier with air and sea transportation units transporting cargoes. to Points abroad. Data in a month, value-added tax not included: ‘ : Gross receipts: . For transporting cargoes |: P5,000,000 For transporting passengers ; 5,000,000 Payments to VAT suppliers of materials and _ service providers { 4,000,000 Payments to non-VAT suppliers of materials 2,500,000 VAT tax consequence of the operations? 3-4.Mr. A is a building contractor. In a month, he had the following data, VAT not included: From a contract price of ‘ 2,000,000 Cash received , ‘A Study on Business Taxes and Transfer Taxes a Scanned with CamScanner_. 4,200,000 300,000 200,000 rr iiding No. 1» i Building 00, with prev owner= Contract price O f PS. Sallections of 2,000,000 ? 700,000 Collected during mont et Terention by the proper ot. For a private suing No.2, no work done * roperty owner = at price of 4,000,000 during the Javances on the contract Price ee Oe month 3 Purchases from VAT suppliers during th For Building No. 1: Materials 2,500,000 ‘Sub-contractors — for labor 4,000,000 Fools and parts replacements for const- truction equipment ? 40,000 Value-added tax paid for the month? e month: 3-6.For services rendered, VAT not included: Gross receipts g Cost of materials — porreces From VAT suppliers From non-VAT suppliers 400,000 Cost of services ear fram VAT service providers 100, ‘rom non-VAT service providers a Gostof fixed asset purchased from VAT suppl oO value ecided tax payable? eee ee /alue-added tax payable? ees a 3-7.Mr. C is a Certified Public Accountant. He h: . ad the following data it taxnotinduded: AT 'Xable month, any In contracts fe a for professi Cash received Professional services: ASt ody P200,000 : . Sines Taxes and Transfer Taxes | S 4 Scanned with CamScannerPROBLEMS 4-1. Mr. A sold goods t i not included wes Poti The selling price, VAT : How much was the value-added tax? 4-2. Mr. C PEGo0O Goods to Mr. D, VAT included, at How much was the value-added tax? ax? How much was the Selling price, VAT not i Prepare the sales invoice. Bi vet net nude 4-3. Mr. C sold an article for P100,000, and billed the buyer P150,000, with no details on value-added tax. What and how much, were shown in the sales invoice? 44. Mr. D sold an article to Mr. E with a price, VAT not included of P70,000: He prepared an invoice which showed a price, VAT Not included, of P65,000 and a value-added tax of P5,000: How much was the value-added tax? 4-5. Mr. F made a sale to a senior citizen of goods on which VAT exemption is provided in the Senior Citi- zen_ Law. The goods were sold to the general public VAT included at P2,280. How much must the sale to the senior citizen be? 4-6. Sale of food and soft drinks to the senior citizen were, on prices, VAT, included: Fe For food ' P4150 For soft drinks t se : 30 Asenior citizen had a 20% discount. : What and how much, were shown in the sales invoice? ane Tavae and Transfer Taxes s hs 47 Scanned with CamScannerdal oe following 5-1. MCo., a VAT taxpayer hadith “ month VAT not included, in each of: 9 onth 000,000 tort) 2,000,000 P3, ies 1,000.0! 000 600,000 Purchases from VAT o ~—«800 suppliers 400,000 s eieee ea How much was the VAT payable 0! — The first month? Peart The second month? ‘tev? At the end of the quarter? + included in each of 5-2. The following were transactions, VAT Not! 3" Month 48 Month 2% Month 0,000 Sales 1,000,000 _ P1,200,000 2,000) Purchases from VAT 0,000 suppliers 1,200,000 600,000 80 How much was the VAT payable for: a The first month of the quarter? The second month of the quarter? At the end of the quarter? rag ae 5-3. The following were cumulative data, VAT not included of Y Co.: 2nd Quarter 1% Quarter 1 Month 2 Month 3 Month Sales . P3,000,000 P4,000,000 5,000,000 P6,000,000 Purcha- ses* 2,500,000 2,900,000 3,200,000 3,700,000 “from VAT suppliers i How much was the VAT payable for: The first month of the second quarter? The second month of the second quarter? At the end of the second quarter? ) 5-4. Give the following account balances: March 31 - Output taxes ) Input taxes P50,000 June 30 - Output taxes 60,000 Input taxes ; 95,000' Give the joumal entry on Mi 80,000 ss larch , Give th journal entry on vune'30 A Study of Business Taxes and Tranefar r-..- Scanned with CamScanner2019, rading pusiness ot a Bot 9 25000, VAT not included. input tax f ol ‘ebruary 6-1. 6-2. Mr. B, a VA is euipme : i Ss. . i ten mol not included, W! al ful life of te ao 019? ich. was the input ta rr a ic it hased a fixe 6-3. CCo.isa service provider. It, purchas® cea for’ P2,400,000, with @ useful life of three years, VAT not included. ‘Monthly input tax? DCo. isin manufacturing business. It purchased a fixed asset on July 1, 2019 with a useful life ©! ten years for 2,100,000, VAT not included. How much was the monthly input tax? .J in March 2019, fixed assets: Asset No. 1 (useful life of 5 years) Asset No. 2 (useful life of 2 years) “ Input tax of ‘March 2019? ed assets in a month: 6-6. GCo. purchased several fix ful life of 8 years) Asset No. 1 (use! Asset No. 2 (useful life of 3 years Asset No. 3 (useful life of 10 months) ‘Asset No. 4 (useful life of 2 years) Input taxes for the month? 6-7. Ho. has, in its books of accounts the following: March 1, 2019, acquisition of a fix it a useful life of 6 years ed eset wil May 5, 2019, acquisition of a fi i useful life of 2 years iyed. aeaet ite May 8, 2019, acquisition of a fixed asset with a useful life of 4 years The fixed asset acquired on March 1, 2019 was retired on May 2, 2019. Input taxes for May, 2019? 6-8. | Co. is having its factory building constructed by ‘A Study on Business Taxes and Transfer Taxes Ny 6-4. 6-5. E Co. purchase Scanned with CamScanner 550,000 400,000 P900,000 720,000 200,000 400,000 4,500,000 600,000 500,0006-10. o ctor. Uy, tract, tne i, ind rials and ping contrac," construction con. and labor for a Pig r will supply i to be paid periog; contr. Fi ress tilings Progra’, a B Co, rae aa fel Ire Month of Sy, apy Palmers” PP? Of Au P; Input tax of. July 2010F 2019 i 2.00 oo) Input tax of August, 20192 J Co. is @ VAT tax, ‘ i Payer. It had a buildi Sines Use constructed by ne he i OS contract Price of 12,000 0005 09 contactor une seed On the stage of Completion and t Progress billing of. the building Contractor. Bil- lings and peeled thereon were as follows: June, 2019 July, is a vie 4 payment made in August 2019) Input value added taxes for: May, 2019. * June, 2019 July, 2019 August, 2019 Mr. L is a taxpayer. with VAT and non-VAT busi- ness. He had the following data, VAT not inclu- ded, in a VAT taxable period. > Sales, VAT business Sales, non-VAT business Purchases of goods, from VAT suppliers, for VAT , business and non-VAT business 6-11. 6-12. A Ghitts na Biininnce Taves and Transfer Taxes How much was the input tax? How much was the value-added tax payable? A VAT taxpayer had the following data on sales and puichases of a month, value-added tax not included: Sales, exports : j Purchases from VAT taxpayers Be, Value-added tax refundable? ; th of “April is a VAT. taxpayer. In.the mont i st head the following data on sales and pur Chases, value-added tax not included, and in- P3,000,000" 3,000,000 3,000,000, 3,000,000 P3,000,000 2,000,000 1,000,000 P4,000,000 1,200,000 6-13" Scanned with CamScanner6-13. 6-14, ‘ f 9: 2,000,000 o18, payane a P2+590,000 come tox due for? : 460,000 les, EXPO! ayers Purchases rom VAT taxppy pie in 20 ae pay: for 2018 P: income Income tax due ndable/in' rt sales The value-added tax remtable to XP a el ces al iputal ternal rev! able, if input taxes © inet other int seers are taken as credit 209 nue taxes? . g, He regis- rin 2018.6 Mr, Twas a non-VAT taxpaye! ar beginning tered for and race er 208 he had 4, 2019. On aa! ihe rolling data on his business: vers p 600,000 inventory, purchased m VAT apoliers + © 400,000 Supplies, purchased from 1,100,000 mo er purchased from VAT taxpayers u Transitional input tax on inventory? ; Transitional.input tax on supplies? Transitional input tax on fixed asset Mr. U started his business in 2017 as @ non-VAT taxpayer. For 2018' his " sales amounted to 3,500,000, and he registered as a VAT taxpayer for 2019. On December 31, 2018, he had the following: Inventory of goods for sale (purchased from VAT suppliers, VAT not included) Cost Net realizable value 40.000 jupplies purchased from V/ ie , ‘ not included /AT suppliers, VAT ‘or January, 20° Be Sales ma 19, he had (VAT not included): Pur free oN suppliers P500,000 The value-add dey tax? 160,000 : r January 20197 f * ——- aot 5,000 A Study on Businese T=--- Scanned with CamScannerde PROBLEMS Mr. Ais an imy - porter-tray he imported articles to i eon one occasion ation follows: Id. Data on the import- Invoice cost ir Freight of the importation P1,000,000 Insurance "40,000 Customs duty 15,000 Customs brokerage fee ; Sa Processing fee 20,000 : Excise tax and other legitimate expenses of wee importation pric easing Prior to removal from customs i 90,000 How much is the landed cost tax base of the value-added tax? oo much s the value-added taxon the importation? Fang ‘0., an importer of merchandise for focal sales, had the following data on an importation: 5 Invoice cost - i P2,000,000 Freight i a 000 Insurance 20°000 Customs duty 180,000 Customs brokerage fee 40,000 Processing fee 20,000 Excise tax and other legitimate expenses of importation prior to removal from customs custody 90,000 The customs duty was based on a dutiable value of the importation (as determined by the Bureau of Customs) of 1,800,000 | How much is the tax base of the value-added tax? How much is the value-added tax on the importation? An importer-trader had the following data in month, : VAT nat included: Landed cost on an importation, sic 1,000,000 Expenses on the importation prior to removal from ok customs custody s ia Expenses on the importation after removal a customs custody ‘ i 2,000,000 Selling price of goods imported 000, aay err ia the value-added tax payable on the sole? —— . Aservice provider had the following data Ina month VAT not included: veredan P3,000,000 Gross receipts for services "on : ats ele een f 73 Ud roanefar TAXES ~ Scanned with CamScanner500,000 Landed cost of tools imported Payment to a local VAT sub-contractor for 4,000,000 services How much is the value-added tax payable for the —_—— month? AStudy es Philippine Business and Transfer Taxes Scanned with CamScanner