Answered: VAT Suppliers P400,000…

Business

Accounting

VAT Suppliers P400,000 P800,000 P600,000

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 1BCRQ

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

M Co., a VAT taxpayer, had the following data, VAT not included, in each of:

1st month 2nd month 3rd month

Sales P1,000,000 P2,000,000 P3,000,000

Purchases from

VAT Suppliers P400,000 P800,000 P600,000

How much was the VAT payable for:

The first month?

The second month?

At the end of the quarter?

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