Jenga Engineers and Associates is a firm of engineers and designers. In the
year of income 2005 they earned professional fee of Sh.7,500,000 before VAT.
Their accounts show the following expenses:
Sh.
Medical services
Accountancy and audit
Legal services
Design materials
Salaries and wages
Depreciation
180,000
225,000
300,000
1,600,000
2,410,000
985,000
Required:
(i) Value Added Tax Account for the year of income 2005.
( 6 marks)
(ii) Comment on payment of VAT computed above.
( 2 marks)