The accounting entries for the expenses related to telephone, electricity, and water bills for a company, based on the given information are:
1. Telephone Expenses:
Debit Telephone Expense account by 2,040,000 VND
Credit Cash/Bank account by 2,040,000 VND
2. Water Expenses:
Debit Water Expense account by 105,000 VND
Debit Water Waste Fee account by 4,500 VND
Credit Cash/Bank account by 109,500 VND
3. Electricity Expenses:
Debit Electricity Expense - Production account by 30,800,000 VND
Debit Electricity Expense - Administration account by 4,055,000 VND
Credit Cash/Bank account by 34,855,000 VND
In addition, the VAT/GTGT (Value Added Tax) on these expenses needs to be calculated and recorded separately.
VAT/GTGT on Telephone Expenses:
VAT/GTGT = 2,040,000 VND x 10% = 204,000 VND
Debit Input VAT account by 204,000 VND
Credit Cash/Bank account by 2,244,000 VND
(2,040,000 VND + 204,000 VND)
VAT/GTGT on Water Expenses:
VAT/GTGT = 105,000 VND x 5% = 5,250 VND
Debit Input VAT account by 5,250 VND
Credit Cash/Bank account by 114,750 VND
(109,500 VND + 5,250 VND)
VAT/GTGT on Electricity Expenses:
VAT/GTGT = (30,800,000 VND + 4,055,000 VND + 4,500 VND) x 10% = 3,460,500 VND
Debit Input VAT account by 3,460,500 VND
Credit Cash/Bank account by 38,305,500 VND
(34,855,000 VND + 3,460,500 VND)
Therefore, the accounting entries for the above expenses and their respective VAT/GTGT would be:
Debit Telephone Expense account by 2,040,000 VND
Debit Water Expense account by 105,000 VND
Debit Water Waste Fee account by 4,500 VND
Debit Electricity Expense - Production account by 30,800,000 VND
Debit Electricity Expense - Administration account by 4,055,000 VND
Debit Input VAT account by 3,669,750 VND
Credit Cash/Bank account by 40,023,750 VND
(37,000,000 VND + 3,669,750 VND)
Note: The Input VAT account mentioned above is a temporary account used to record the VAT paid on expenses. This amount will be offset against the output VAT collected to calculate the overall VAT liability of the company.
