pathfinder - The Institute of Chartered Accountants of Nigeria

PATHFINDERCandidates are advised to pay attention to these areas in future examinations.QUESTION 6SOULINE COMPANY LIMITEDCOMPUTATION OF VALUE ADDED TAX PAYABLE FOR 2010 ASSESSMENT YEARNNINCOMEPart payment received 2,900,000Additional payment received 1,600,000 4,500,000Output VAT on income received @5%(N4,500,000 X 5%) 225,000DIRECT EXPENSES:Bought chipping materials 60,000Bought load of cement 80,000Bought load of sand 50,000 190,000Input VAT on direct expenses @5%(N190,000 x 5%) N9,500NET VAT PAYABLE = 225,000 – 9,500= N215,000b. The VAT computed must be paid on or before the 21 st day of themonth following that in which the supply or purchase wasmade.INTERMEDIATE EXAMINATION - NOVEMBER 201078