14 December 2009
1) A ltd limited purchase 1000 calulators from X LTD at rs.100 each plus VAT 4%. AND SOLD 800calculators at rs.100 plus VAT. Prepare a trading account, and find out net vat payable. 2)In case 1 above if A LTD sold calulators at 10% discount. Then what is the gross profit and VAT Payable. 3)In case 1 above if A Ltd give a offer for purchase of 10 calculators 1 calculator free. then what is the gross profit and VAT pAYABLE. 4)iN CASE 2 ABOVE IF THE DISCOUNT IS REIMBURSED BY X LTD. then what is the gross profit and vat payable. 5)In case 3 above if the free quantity is replaced by the X ltd then what is gross profit and vat payable. 6) Pass the necessary entries in the books of A ltd for question no 4 & 5.