Ask a tax advisor on the topic of Balance sheet

financial administration

April 11, 2011 | 80,00 EUR | answered by Dipl.BW/SB Ulrich Stiller

Financial accounting; accounts + sales tax + taxes;

Who can solve this?

(see attachments)

Dipl.BW/SB Ulrich Stiller

Dear client,

Thank you for your inquiry, which I would like to answer based on the information provided and considering your efforts within the scope of an initial consultation as follows:

Question 1a)

Sales tax debit 9,000 to input tax credit 9,000
Sales tax debit 2,000 to input tax credit 2,000
Sales tax debit 14,000 to input tax credit 14,000

The input tax account is now at zero, and the sales tax account is reduced by 27,000 euros from 36,500 to 9,500 euros. This difference is the sales tax payment. This payment is recorded as follows:

Sales tax debit 9,500 to bank credit 9,500. This balances the sales tax and input tax accounts at zero and closes them.

However, this is not how it is usually recorded in practice!

Question 1b)

Recording of shelves:

Operating and business equipment debit 56,000
Input tax debit 10,640
to liabilities credit 66,640.

The payment with a 2% discount is recorded as follows:

Liabilities debit 66,640
to bank credit 65,307.20
to received discounts credit 1,120
to input tax credit 212.80

Question 1c

Accounts receivable from goods deliveries debit 178,500
to revenue from goods deliveries credit 150,000
to sales tax credit 28,500

Question 2

The balance sheet cannot be prepared with these numbers, as the opening balance, which is the balance sheet of the previous year, is missing. Additionally, only expense accounts, but not revenue accounts, are provided. Therefore, essential numbers are missing.

I hope I was able to help you nonetheless.

Best regards,

Ulrich Stiller
Tax consultant/Diploma in Business Administration