Reference no: EM132641530
Question - The following Sales and Purchases were made by Joachim Ltd during the month of July 2020. All transactions were VAT inclusive charged at 16%.
2020 K July 1 Sold goods on credit to A. Banda &Co. 2,200
5 Sold goods on credit to D. Phiri & Co 3,800
10 Bought goods on credit from: F. Longwe and Partners 5,100, R. Dongwe Ltd. 2,700
14 Bought goods on credit from G. Mwale 900
16 Sold goods on credit to D. Phiri & Co 800
23 Bought goods on credit from E. Fundi 1,400
31 Sold goods on credit to P. Mwenya 300
Required -
(a) Enter the above transactions in the analytical Sales and Purchases Day Books for the month of January 2020 (A VAT analysis column IS required).
(b) Prepare the VAT account to ascertain the amount to be paid or recovered from the tax authorities as on 31st January 2020.