the following were selected from among the translations completed by VAT,a VAT register merchandising firm during January
Question:
the following were selected from among the translations completed by VAT,a VAT register merchandising firm during January of the current
1.Received cas from sales of furniture birr 250000(VAT including)
2.paid entertainment expense birr 5000
3.purchase raw materials for birr 49000 for cash (VAT including)
4.paid utility expense birr 20000
5.sales of furniture on account birr 80000 (VAT including )
6.paid salary expense birr 28000
7.paid salary expense birr 20000
8.doubt full account expenses birr 8000
Required
TASK 1. record the necessary journal entries related to the transaction
TASK 2. determine amount of VAT payable receivables from to ERCA
TASK 3. Prepare income statement for the month January for tax purpose and calculate profit tax liability (business profit tax 30%)