Bloggs Boots (K) Ltd. is a leading manufacturer of a wide range of goods which are either consumed locally or exported. During the month of September 2020, the following transactions took place:

September

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Paid sh.960,000 to Dr. Greg William, an American, who had come to design the companys website. Received architects certificates amounting to sh.3,200,000 for the construction of an extension to the factory building which had been completed. Out of this amount, sh.1,000,000 represents retention money. Purchased goods on credit from KLM Ltd. worth Sh.1,360,000. Purchased stationery for use in the business on credit from Text Book Centre worth Sh.500,540. Sold goods worth Sh.2,650,000 on credit to Options (K) Ltd. Sold goods to Zim Bank (K) Ltd. for Sh1,790,200 Paid Maersk shipping Line sh.350,000 for transporting goods purchased by Zim Bank (K) Ltd. Options (K) Ltd returned goods worth Sh.300,000 due to some major defects. Sold goods worth Sh.865,000 on credit to Homa Bay Wholesalers. Returned defective office stationery, which had cost Sh.50,800 to Text Book Centre. Sold goods for Sh.1,220,000 to Rwanda Miners Ltd. a company based in Rwanda. Goods worth Sh.200,000 were stolen while in transit to Rwanda. Granted Sh.20,000 allowance to Rwanda Miner Ltd. for some minor defects on some items. Agreed to cancel the account received from Zim Bank (K) Ltd. in exchange for services rendered by them to the company in the Coast Province. Sold goods for cash amounting to Sh.2,734,000. Homa Bay Wholesalers was declared insolvent by the High court and a winding up order issued. Telephone and electricity bills for the month were received. The VAT on the telephone and electricity bills was Sh.30,000 and Sh.17,500 respectively.

Required:

(i) The VAT account for Bloggs Boots (K) Ltd. for the month of September

2020 (where applicable prices and payments made are VAT inclusive.

(ii) Amount of VAT payable and when it is due.