Mr Onyango operates an electronics shop along Kenyatta Avenue in Nairobi. He undertook the following transactions for the month of May 2018.
1 May 2018
4 May 2018
4 May 2018
5 May 2018
6 May 2018
8 May 2018
9 May 2018
12 May 2018 Purchased 50 stop watches for a total of Sh.50,000
15 May 2018 Purchased 100 alarm clocks at a total value of Sh.80,000 18 May 2018 Sold the remaining 5 cameras each at 25% above cost price 20 May 2018 Sold 3 slide projectors for a total of Sh.750,000
Purchased 10 cameras for a total of Sh. 500,000. Purchased flashbulbs for a total of Sh.200,000 Purchased 5 slide projectors for a total of Sh. 1,000,000 Sold 5 cameras each at 25% above cost price. Purchased 200 wristwatches at Sh.1,500 each
Sold 2 slide projectors for a total of Sh. 500,000 Sold flashbulbs that cost Sh. 100,000 for Sh.150,000
22 May 2018 Sold 100 wristwatches at Sh.2,000 per watch 25 May 2018 Sold 70 alarm clocks each at 30% above cost. 27 May 2018 Sold 50 stop watches for a total of Sh. 75,000
Required
(i) calculate (prices are inclusive of VAT)
• Input
• Output Tax
(ii) Prepare the VAT account clearly showing the VAT payable (refundable).
(iii)State when the above tax is due, and the penalties payable if the tax is not paid on the due date.
1 answer