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  • Gamification - Test

Test your tax and accounting skills

Jul 31, 2018

Test your tax and accounting skills and set yourself a problem like those our employees deal with every day. If you find the following questions fun and easy to answer, you have a good basis for succeeding in an application to join us.

So let´s go:

You have as your client an internationally operating industrial company and you have obtained the following facts relevant to the company’s accounting and tax treatment:

Your client acquires an industrial printing press for a purchase price of EUR 1,330,000 (excluding VAT). Shipment is ex works, and payment is agreed to be due within 60 days. 

Shipment and delivery of accounts takes place on 31 October. Delivery of the printing press is undertaken by carriers, who invoice EUR 10,000 (exclusive of VAT) for their services. Payment of the invoice is made immediately on receipt on 2 November. 

Several minor faults are discovered on the trial run of the press. It does not have the agreed capacity. The supplier is made aware of these defects and immediately offers a discount of 15% of the purchase price. The credit note follows on 10 December.

The remaining amount of the purchase price is paid on 30 December after deduction of a 2% early payment discount.

The printing press was commissioned on 10 December. It is estimated to have a useful economic life of 10 years for both tax and commercial accounting purposes.

  • What are the necessary bookkeeping entries to reflect these events?
  • What is the effect of acquiring the industrial printing press on your client’s tax position?

Lösung

 

30.10.         tax profit
           
0 machinery 1.330.000,00     199.500,00 0,00
2 input tax 266.000,00     39.900,00  
to 3 liabilities   1.596.000,00   239.400,00  
      0,00    
02.11.          
           
0 machinery 10.000,00       0,00
2 input tax 2.000,00        
to 2 bank account   12.000,00      
      0,00    
10.12.          
           
3 liabilities 239.400,00       0,00
to 0 machinery   199.500,00      
to 2 input tax   39.900,00      
      0,00    
           
30.12.          
           
3 liabilities 1.356.600,00       0,00
to 2 bank account   1.329.468,00      
to 0 machinery   22.610,00      
to 2 input tax   4.522,00      
      0,00    
           
Depreciation base   1.117.890,00      
Effective life 10,00        
depreciation 55.894,50        
           
7 fixed-asset depreciation 55.894,50       -55.894,50
0 machinery   55.894,50