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Zain Co. who is registered trader with VAT Directorate of Ministry of Finance of Bahrain. Zain Co. is dealing with the products which are standard
Zain Co. who is registered trader with VAT Directorate of Ministry of Finance of Bahrain. Zain Co. is dealing with the products which are standard rated @10%, zero rated and exempt rated. Manama is supposed to submit VAT returns on quarterly basses. Following are the transactions of 2021. 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 July 14 Purchased 1000 units of Item A from Rami @BD 200 each (net) on credit. This item is standard rated supplies at the time of purchases and sales. (credit terms 5/25, n/30) July 16 Sold 200 units of Item A for BD 200 (net) to Hanan on credit. July 26 Sold 200 units of Item A for BD 250 (net) to Ahmad on cash. Trade discount was 5%. July 29 Returned 100 units of item A to Rami. July 31 Settled the dues of Rami and got cash discount. August 8 Purchased 400 units of Item B from Wafa @BD 240 each (net) on cash. This item is standard rated supplies at the time of purchases and exempt rated at the time of sales. Trade discount was 5%. August 29 Sold 100 units of Item B @440 each (Net) on credit to Hamdan. August 31 Hamdan returned 20 units and give money for remaining units. Assume that credit claimed in books of account on September 30,2021 and VAT return is submitted on October 25,2021 with VAT payment or refunded. Instructions: Prepare the Journal entries for above transactions.
Zain Co. who is registered trader with VAT Directorate of Ministry of Finance of Bahrain. Zain Co. is dealing with the products which are standard rated @10%, zero rated and exempt rated. Manama is supposed to submit VAT returns on quarterly basses. Following are the transactions of 2021.
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
July 14 Purchased 1000 units of Item A from Rami @BD 200 each (net) on credit. This item is standard rated supplies at the time of purchases and sales. (credit terms 5/25, n/30)
July 16 Sold 200 units of Item A for BD 200 (net) to Hanan on credit.
July 26 Sold 200 units of Item A for BD 250 (net) to Ahmad on cash. Trade discount was 5%.
July 29 Returned 100 units of item A to Rami.
July 31 Settled the dues of Rami and got cash discount.
August 8 Purchased 400 units of Item B from Wafa @BD 240 each (net) on cash. This item is standard rated supplies at the time of purchases and exempt rated at the time of sales. Trade discount was 5%.
August 29 Sold 100 units of Item B @440 each (Net) on credit to Hamdan.
August 31 Hamdan returned 20 units and give money for remaining units.
Assume that credit claimed in books of account on September 30,2021 and VAT return is submitted on October 25,2021 with VAT payment or refunded.
Instructions:
Prepare the Journal entries for above transactions.
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