dept store

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Need help with registration fees payable to the Dept store?

I set up a counter in a Dept. Store to sell my goods. At the end of the month, Dept. Store will publish a report on the sales of my counter and take charge of 38% as commission / MOC sharing. My book acknowledges that the discounts given Transation instead of commission payable. Pls advice how should I understand this transaction and the VAT in question.

Answer: It should be entered: (Dr) Commission expense (Cr) of the Commission to pay the VAT is recognized on the sale of goods. In fact, it is evident in the sales report transmitted by the store. If you're in the Philippines, the VAT is 12%. Entry should be: (Dr) Cash / Receivable $ 600 (Cr) Turnover $ 535.71 (Cr) exit tax registration $ 64.29 purchase: (Dr) Purchases $ 446.43 (Dr) input tax $ 57.57 (Cr) Accounts Payable $ 500 at the end, compensate for the exit tax cons of input tax for VAT due to: (Dr) Output Tax $ 64.29 (Cr) input tax $
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