Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Samson plc is registered for VAT. The following information relates to the company's VAT return for the quarter ended 31 March 2020: i) Sales invoices

image text in transcribed
image text in transcribed
Samson plc is registered for VAT. The following information relates to the company's VAT return for the quarter ended 31 March 2020: i) Sales invoices totalling 330,000 were issued to VAT registered customers, of which 240,000 were for standard-rated sales and 90,000 were for zero-rated sales. ii) Samson plc offers its standard-rated customers a 5% discount for prompt payment. This discount was taken by 1/3 of the customers. iii) Purchase invoices totalling 154,000 were received from VAT registered suppliers, of which 136,000 were for standard-rated purchases and 18,000 for zero-rated purchases. iv) Standard-rated expenses amounted to 28,000. This includes 3,900 for entertaining UK customers. v) On 15 March 2020, the company wrote off irrecoverable receivables of 4,000 and 1,680 in respect of invoices that were due for payment on 10 August 2019 and 5 November 2019 respectively. vi) On 11 January 2020, Samson plc purchased machinery for 24,000 and sold office fittings for 8,000. Input VAT had been claimed when the office fittings were originally purchased. vii) On 1 March 2020, Samson plc purchased a motor car costing 28,400 for the use of its finance director. The finance director is provided with free petrol for private mileage, and the cost of this is included in the standard-rated expenses in note (iv). The relevant quarterly scale charge is 432. Both figures are inclusive of VAT. Unless stated otherwise, all of the figures above are exclusive of VAT. YOU ARE REQUIRED TO: a) Calculate the VAT payable by Samson plc for the quarter ended 31 March 2020 and state the payment due date. b) Samson plc is experiencing cash-flow difficulties. The company submitted its VAT return and paid the VAT due for the quarter ended 31 December 2019 on 15 March 2020. State the consequences if Samson plc does not submit the return for the quarter ended 31 March 2020 until 25 May 2020. (maximum word count 80 words)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Theory

Authors: Ian Dennis

1st Edition

1138599700, 978-1138599703

More Books

Students also viewed these Accounting questions