Question
Manama Co. who is registered trader with VAT Directorate of Ministry of Finance of Bahrain. Manama Co. is dealing with the products which are standard
Manama Co. who is registered trader with VAT Directorate of Ministry of Finance of Bahrain. Manama Co. is dealing with the products which are standard rated @5%, zero rated and exempt rated. Manama is supposed to submit VAT returns on quarterly basses. Following are the transactions of 2018. July 10 Purchased 150 units of Item X from Ali @BD 150 each (net) on cash. This item is standard rated at the time of purchase and zero rated at the time of sales. July 13 Sold 120 units of Item X for BD 200 (net) to Ahmad on credit
Assume that credit claimed in books of account on September 30,2018 and VAT return is submitted on October 25,2018 with VAT payment or refunded.
Instructions: Prepare the Journal entries for above transactions.
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