12/04 A company sells merchandise for €20,000 plus 20% VAT

13/04 The same company purchases finished products for €13,000 plus 20% VAT
15/04 Paying for the finished products within 10 days earns a 3% discount.
17/04 Grants a 2% discount when customers pay within 10 days

Accounts
Cash@Bank
Receivable
24,000 15,132
24,000 23,520

Cost for Goods Input VAT

13,000 2,600

Sales discounts Purchase discounts

480 468
00 plus 20% VAT

Sales Revenue
20,000

Output VAT
4,000
# Date Codes Account Names
1 12/04 A… Accounts Receivable
L…
R…

2 13/04 C… Cost for Goods

A… Input VAT
L…

3 15/04 L… Accounts Payable

R…
A…

4 17/04 A… Cash@Bank
C… Sales discounts
 Left (DR)
€ 24,000
Output VAT
Sales Revenue

€ 13,000
€ 2,600
Accounts Payable

€ 15,600
Purchase discounts
Cash@Bank

€ 23,520
€ 480
Accounts Receivable
Right(CR)

€ 4,000
€ 20,000

€ 15,600

€ 468
€ 15,132

€ 24,000
 Income Statement

Sales Revenues ###

- Purchase Costs ###
Purchase Discount € 468
…Sales Discount € (480)
GROSS PROFIT € 6,988
…
…
NET PROFIT (LOSS) € 6,988

Balance Sheet
ASSETS LIABILITIES
Current Assets € 10,988 Current Liabilities € 4,000
Cash € 8,388 Accounts payable € -
Accounts Receivable € - Output Vat € 4,000
Input Vat € 2,600 …
 Non-current
… € -
Liabilities
… …
Non-current Assets € - EQUITY € 6,988
… Share Capital € -
… Profit/(Loss) € 6,988
TOTAL ASSETS € 10,988 TOTAL L+E ###

Cash Flow Statement

Cash Flows from

€ 8,388
operating activities
23520-15132

Cash Flows from

investing activities
Cash Flows from
€ -
financing activities
NET CHANGE IN
€ 8,388
CASH
Report Category Code
Balance Sheet Assets A…
Balance Sheet Liabilities L…
Balance Sheet Equity E…
Income StatemeRevenue/Gain R…
Income StatemeCost/Expense C…

Code Name
A… Cash
A… Cash@Bank
A… Accounts Receivable
L… Accounts Payable
R… Sales Revenue
C… Cost for Goods
C… Cost for Services
A… Input VAT
L… Output VAT
A… Advances to Suppliers
L… Advances from Customers
R… Sales discounts
R… Sales returns
C… Purchase discounts
C… Purchase returns
L… Loans
C… Interest expense
E… Share Capital
E… Additional paid-in capital
C.... Wages and salaries
L… Employees payable
L… Welfare Institutions
L… Tax Payable
C.... Welfare Contribution
A… Machinery
A… Brand