PRACTICE SET

VALUE-ADDED TAX

Direction: (PLEASE READ THIS BEFORE ANSWERING THE GIVEN PROBLEM)

1. This is an individual activity. You are required to submit a proof of answering the
practice set in a form of 3-5 min. video (Max of 5 min.). Video inclusion: video while
answering the activity, brief explanation of your answer re computation of VAT payable
and BIR Form 2550M.
2. Final answer in requirement no. 1 and 2 should be in the given answer sheet below MS
format, and requirement no. 3 should be in BIRM Form 2550M excel file.
3. Please submit this word file and your video to this email address:
bernapparedes@gmail.com.
4. First email received will be the counted and checked as your final answer, in case of
double submission. SUBJECT OF EMAIL: Last Name/Section/Practice Set (i.e.
Enriquez/A/Practice Set). No email subject or wrong email subject will receive a
deduction of five (5) points for not following instruction. There should be a letter/email
body as cover letter in your submission (cover letter in English language), no
email/letter body and/or in Filipino/Tagalog language cover letter will receive a
deduction of three (3) points for not following instruction.
5. Deadline: ON or BEFORE 11:59PM, DECEMBER 13, 2021.
COMPANY INFORMATION
Company name: ABC COMPANY
TIN: 256-584-459-000
Address: 123 Commerce St. Brgy. 4, Lucena City, 4301
Tel. No: (042) 797-1677
RDO Code: 060
Line of Business: 47111 Retail selling in groceries
Name of authorized representative: (Put here your name as President; put your own TIN, if none put
free will 12-digit code)

Check payment details:

Drawee bank: BDO – Lucena
Check number: 000123456
Date: February 20, 2021
Amount: as per your VAT payable computation

In January 2021, ABC Company, a VAT-registered taxpayer, had the following transaction
(VAT not included):
Date Transactions Amount
4 Purchase of goods for sale from DEF Co., VAT taxpayer Php 250,000.00
6 Sales 150,000.00
8 Purchase of supplies from GHI Co., VAT taxpayer 60,000.00
10 Payment of services from JKL, VAT taxpayer 20,000.00
12 Sales 220,000.00
14 Purchase of office equipment from Max Co., VAT taxpayer
(useful life: 36 months) 144,000.00
15 Payment of rent to MNO, VAT taxpayer 50,000.00
20 Purchase of goods for sale from DEF Co., VAT taxpayer 200,000.00
25 Purchase of supplies from PQR Co., non-VAT taxpayer 30,000.00
30 Sales 250,000.00

REQUIREMENTS (70 points):

1. Prepare the journal entries of the given transactions. (see below answer sheet) 30 points
2. Compute the VAT payable during the month. (see below answer sheet) 10 points
3. Fill-out the BIR form 2550M. (download BIR Form 2550M excel file) 30 points
Page 1
Part I 4pts, Part II 15pts, Part III 2pts
Page 2
Schedule 9pts

ANSWER SHEET:
DATE ACCOUNT TITLES DEBIT CREDIT
JAN 4 Purchases 250000
Input tax 30000
Cash 280000

6 Cash 168000
Output tax 18000
Sales 150000

8 Purchases 60000
Input tax 7200
Cash 67200

10 Services 20000
Input tax 2400

Cash 22400

12 Cash 246400
Output tax 26400
Sales 220000

14 Office Equipment 144000

Input tax 17280
Cash 161280

15 Rent expenses 50000

Input tax 6000
Cash 56000

20 Purchases 200000
Input tax 24000
 Cash 224000

25 Supplies 30000
Cash 30000

30 Cash 280000
Output tax 30000
Sales 250000

COMPUTATION OF VAT PAYABLE:

PARTICULARS AMOUNT
Output tax 18000

26400

30000

Total 74400

Less: Input tax 30000

7200

2400

17280

6000

24000

Total 56880

VAT PAYABLE 17,520