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8/19/2019 Value Added Tax Exercise
1/1
EXERCISE IN VALUE ADDED TAXATION
Purchase of goods for P2,500,000.00
VAT rate is 12%
Exchange rate is P43.50/US$1.00
(1) What is the entry when purchases are made?
(2) If the goods are marked up 50% over their cost, and then 70% is
exported and 30% is sold domestically, what is the compound entry for
the sale of all the goods?
(3) How much VAT is payable to (or refundable from) the tax office at
the end of the month? Show the computation.
(4) What is the entry if additional output taxes amounting to
P200,000.00 (from other domestic sales) are also due, and the net taxes
are paid to the tax office?