Pointer on Taxation Final Exams

1 Computation of Gross Income

Ex.
Sales 50,000.00
Cost of sales (14,000.00)
Other Income 16,000.00
Gross Income 52,000.00 answer
2 Computation of Tax Accrual Basis and Tax cash Basis
Ex.
Collections from customer 50,000.00
Accrued Income from Services rendered 40,000.00
Collection from services not yet rendered 36,000.00

Answer: Accrual Basis

Collections from customer 50,000.00
Accrued Income from Services rendered 40,000.00
Collection from services not yet rendered 36,000.00
Total 126,000.00

Answer: Cash Basis

Collections from customer 50,000.00
Accrued Income from Services rendered 40,000.00
Total 90,000.00

3 Computation of Final withholding Tax or 2306

Deped Purchase 100 chairs amounting to 250,000

Answer
Office equipment 223,214.29
Input Tax 26,785.71
W.Tax 13,392.85
Cash in Bank 236,607.15

SMDC Corporation purchase office supplies amounting to 35,000

Answer
Office Supplies 31,250.00
Input Tax 3,750.00
W.Tax 312.50
Cash in Bank 34,687.50

Himex Corporation paid repair for the office aircon unit amounting to 5,000
Answer
Repair & Maintenance 4,464.29
 Input Tax 535.71
W.Tax 89.29
Cash in Bank 4,910.71

4 Computation of Output Tax for Sales

Date Client Name Total Sales Vatable Sales Output Tax

4/1/2019 SMDC Corp 39,000.00 34,821.43 4,178.57
4/3/2019 Himex Corp 40,000.00 35,714.29 4,285.71
4/6/2019 San Miguel Co 65,000.00 58,035.71 6,964.29
Grand Total 144,000.00 128,571.43 15,428.57 Total Output VAT