Ask Experts Questions for FREE Help !
Ask
    krokro's Avatar
    krokro Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Feb 24, 2014, 01:23 AM
    Treatment for VAT to be remitted on the following year
    What is the treatment for Value Added Tax to be remitted on the following year?

    Example:
    December 2013
    Input tax 10,714.29
    Output tax 12,857.14
    To be remitted January 2014 2,142.85

    Is this entry correct?

    Due to BIR 2,142.85
    Other Liabilities VAT 2,142.85

    How will I present this to my financial statements?
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
    Senior Member
    		  
    #2

    Feb 25, 2014, 05:34 AM
    No need for any journal entry since the VAT account will show the credit balance as at the balance sheet date and will be reported as current liability. In January 2014, you will debit VAT account and credit bank when payment is made.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Little help with vat please. [ 3 Answers ]

I have stumbled across vat. Can anyone please write me the journal entries for the following? Cash sales 500. Vat 50. Cash purchase 1000. Vat 100. Credit sales 1500. Vat 150. Credit purchase 2000. Vat 200. The values are random. I just want to know Which accounts will be credit and which...

Vat [ 1 Answers ]

X Ltd has recently purchased supplies from xyz Ltd for $250 less 20% trade discount, plus 17.5% vat, XYZ LTD allows 2.5% cash discount for the payment within 7 days of the receipt of the invoice,Net amount is due for payment by ABC Ltd.

Can probation officer remove you from treatment center whilyou are getting treatment [ 1 Answers ]

Can probation officer come remove you from mental facility after suicide attempts while being diagnises with bipolor disorder and receiving treatment for such denying him prescribed treatment by dr,and through you in jail for discresionary time because he basically soughtr out his own treatment...

Tax treatment for capital gains and losses for year 2007 [ 6 Answers ]

How to treat gains and losses and offsetting?:confused:

View more questions Search