Haki traders has provided you with the following details in respect of transactions for the month of
Question:
Haki traders has provided you with the following details in respect of transactions for the month of February 2020 Sh. Dec-04 Purchases 580,000 Dec-08 Return outwards 46,400 Dec-12 catering expenses 69,600 Dec-15 Repairs of motor cars 23,200 Dec-18 Audit fees 20,800 Dec-20 imports (Cost, insurance and freight) 100,000 Dec-24 Sales (local) 1,904,800 Dec-27 Sales (export) 200,000 Dec-28 Exempt sales 280,000 Dec-30 Photocopying 9,280 Dec-30 Telephone bill 18,560 All transactions are inclusive of VAT at a rate of 16% where applicable Additional information 1. Imports duty is at a 20% on cost insurance and freight (CIF) basis 2. The firm issued credit notes on standard rated goods worth sh. 4,640. 3. A debtor of standard rated goods valued at sh. 40,600 was declared bankrupt on February 2020 Required
a. Determine the VAT payable for the month February 2020 (8 Marks)
b. The accountant of Haki traders plans to pay the VAT payable determined in (a) above on Monday, 21st March 2020. Advice him accordingly