Company sold to Y Company goods worth 10,000.00, exclusive of any applicable tax. If X Company is a VAT registered taxpayer and Y Company is a non-VAT registered taxpayer, the journal entry of Y Company would include debit Purchases, 11,200.00 credit Cash, 10,000.00 debIt Purchases, 10,000.00 credit VAT payable, 1,200.00
Company sold to Y Company goods worth 10,000.00, exclusive of any applicable tax. If X Company is a VAT registered taxpayer and Y Company is a non-VAT registered taxpayer, the journal entry of Y Company would include debit Purchases, 11,200.00 credit Cash, 10,000.00 debIt Purchases, 10,000.00 credit VAT payable, 1,200.00
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter3: Taxes On The Financial Statements
Section: Chapter Questions
Problem 26P
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Question
Company sold to Y Company goods worth 10,000.00, exclusive of any applicable tax.
If X Company is a VAT registered taxpayer and Y Company is a non-VAT registered taxpayer, the
debit Purchases, 11,200.00
credit Cash, 10,000.00
debIt Purchases, 10,000.00
credit VAT payable, 1,200.00
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