Ouestion $($Practies NO:$2)$

Lesson $5$

It is Wednesday $13$ April $201Y$ and you have been asked to visit Chris Simpson and Tina McPhilbin, business partners in Derby Pottery.

VAT Account

The partnership is registered for VAT, and the first of your tasks today is to complete their VAT return. The following totals have been extracted from Derby Pottery's books and show the information relating to VAT during the VAT quarter ended $31$ March, none of which has yet been posted to the VAT Account:

$\backslash$table$[[$Source$,$VAT$],[$Sales To credit customers,$30,670],[$Sales Returns by credit customers,$2,046],[$Cash Sales,$19,700],[$Purchase from credit suppliers,$45,421],[$Purchase Returns To credit suppliers,$3,500],[$Purchase of fixed assets,$1,500],[$Payments of business expenses,$84]]$

All items sold and purchased by Derby Pottery during the period above were subject to VAT at the standard rate $(20\%).$ All the above transactions were made within the United Kingdom; there were no transactions with other EC Member States.

REQUIRED

Enter the postings for the quarter ended $31$ March $201$Y to the VAT account within the General Ledger of Derby Pottery. Balance off the account as at $31$ March $201$Y$,$ bringing down the balance as at $1$ April $201Y.$

Page $1$

Derby Pottery

General Ledger $($Extract$)$

Dr

Value Added Tax $($VAT$)$

$Cr$

$\backslash$table$[[\backslash$table$[[$Date$],[201Y$