Cendimee P.

Posadas
BSAc 3C
AccTax2 – Al-Jan T. Ebbah
CASE 1 – 20 pts
Maria Makiling is a VAT registered person. She had the following transactions during the
months of April and May 2021.

April:
a. She became subject to VAT on January 1, 2021. Her inventory on said date is P660,000.
VAT actually paid on the inventory is P40,000.
b. Cash purchases of inventory was P560,000, inclusive of VAT.
c. Cash sales of goods was P1,344,000, VAT inclusive.

May:
a. Cash purchase of inventory, P550,000 from a non-VAT registered person.
b. Cash purchase of equipment, VAT not included, P50,000
c. Cash sales of goods, P336,000, VAT included
d. Return of merchandise purchased from VAT registered supplier, P26,040 and
simultaneous receipt of cash for the return
e. Sales return of P36,960, VAT included, and simultaneous issue of check for P36,960.

Required:
1. Journalized the above transactions. (10 pts)
2. Compute for the VAT payable/overpayment for each period. (10 pts)
April Vat Payable
a. Transitional Input Vat 40,000
Inventoy 40,000 April
b. Inventory 500000 Output Vat 144000
Input Vat 60000 Input Vat 100,000
Cash 560,000 Vat Payable 44,000
c. Cash 1,344,000
Sales 1,200,000 May
Output Vat 144000 Output Vat 32,040
Input Vat 3210
Vat Payable 28,830
May
a. Inventory 550,000
Cash 550,000
b. Equipment 50,000
Input Vat 6000
Cash 56,000
c. Cash 336,000
Sales 300,000
Output Vat 36,000
d. Cash 26,040
Purchase Returns 23,250
Input Vat 2790
e. Sales Returns 33,000
Output Vat 3960
Cash 36,960
CASE 2 – 20 pts
Ligaya is engaged in business both subject to VAT and non-VAT and has the following
transactions during the month:

a. Cash purchase of goods from persons exempt from VAT

VAT business P50,000
Non-VAT business 20,000

b. Purchased goods from VAT registered person in cash

VAT business P89,600
Non-VAT business 22,400

c. Purchased on cash from VAT-registered person, for use in VAT and non-VAT business.
Amounts are inclusive of VAT
Supplies P21,280
Equipment 36,064

d. Sales invoices
VAT business P336,000
Non-VAT business 84,000

Required:
1. Record the journal entries (10 pts)
2. Compute for the VAT payable/overpayment. (10 pts)
(The answer is on the next page)
1.) 2.)
a. VAT Business Vat Payable
Purchases 50,000 Vat Business
Cash 50,000 Output Vat 36000
Non-VAT Business Input Vat 15744
Purchases 20,000 Vat Payable 20256
Cash 20,000
b. VAT Business
Purchases 80,000
Input Vat 9600
Cash 89,600
Non-VAT Business
Purchases 22,400
Cash 22,400
c. VAT Business
Supplies 19,000
Input Vat 2280
Cash 21,280
Equipment 32,200
Input Vat 3864
Cash 36,064
Non-VAT Business
Supplies 21,280
Cash 21,280
Equipment 36,064
Cash 36,064
d. VAT Business
Cash 336,000
Sales 300,000
Output Vat 36000
Non-VAT Business
Cash 84,000
Sales 84,000
CASE 3 – 10 pts
Balikbayan Company, a VAT-registered business, had the following selected data for the month:

Export sales P1,848,000

Domestic sales 1,452,000
Purchase of goods for export 422,000
Purchase of goods for domestic sale 618,200
Purchase of supplies 254,000

Required:
Compute for the VAT payable for the month assuming all data are VAT exclusive.

Case 3

Export Sales 1,848,000 Purchases from Export 422,000 Output Vat 174240
Vat Rate 0% Purchases from Domestic 618,200 Input Vat 155304
Output Vat 0 Purchases From supplies 254,000 Vat Payable 18936
Total Purchases 1,294,200
Domestic Sales 1,452,000 Vat Rate 12%
Vat Rate 12% Input Vat 155304
Output Vat 174240

Total Output Vat 174240

CASE 4 – 15 pts
Nas Dali imported goods from Israel as follows:

Value of goods per Bureau of Customs P250,000

Freight 20,000
Insurance 75,000
Bank charges 4,000
Customs duties 75,000
Arrastre inside Customs zone 5,000
Wharfage dues 3,600
Brokerage fees to Customs broker 4,500
Trucking expense from the BOC to the warehouse of importer

Required:
1. What is the VAT payable on importation? (10 pts)
2. Supposed Nali Dali sells the goods to Jessica Suha for P648,000, inclusive of VAT, how
much is the VAT payable of Nas Dali for the period? (5 pts)
Case 4

1.) Value by BOC 250,000 Other Charges

Insurance 20,000 Bank Charges 4,000
Freight 75,000 Arrastre Fee 5,000
Total Invoice Price 345,000 Wharfage dues 3,600
Custom Duties 75,000 Brokers fee 4,500
Other Charges 17,100 Other charges 17,100
Landed Cost 437,100
Vat Rate 12%
Vat Payable 52452

2.) Invoice Amount 648,000

Output 69428.57

Vat on Importation 52452

Freight 1800
Input Tax 54252

Vat Payable 15176.57

CASE 5 – 5pts
Ming Ming was registered under the VAT system on January 1 of the current year. Her records
during the month show:

Value of inventory as of December of last year purchased from VAT- P50,000

registered persons
VAT paid 5,000
Value of inventory as of December of last year purchased from non-VAT 60,000
persons
Sales, net of VAT 200,000
Purchases, net of VAT 70,000

Required:
Compute for the VAT payable.
Case 5
higher
Actual Vat Paid 5,000 Sales, Net of Vat 200,000 Output Vat 24000
Vat Rate 12% Input Vat 13,400
Inventory from Non-Vat 60,000 Output Vat 24000 Vat Payable 10,600
Inventory from Vat 45,000
Value of Inventory 105,000 Purchases, Net of Vat 70,000
Vat Rate 2% Vat Rate 12%
2% Input Value 2100 Input Vat 8400
Transitional Input Vat 5,000
Input Vat 13,400