Question: d) Category G Income – Asset Increases
Value of Surplus Value = 10.000 €
CLASSIFY THE FOLLOWING STATEMENT AS TRUE OR FALSE:
STATEMENT
1.1 Taking into account all the information provided, the amount payable of IRS
in 2026, related to 2025 is 22.551,03€.
Student name: ______________________________
PART IV
1. VAT DETERMINATION (4 values)
M&M, Lda., headquartered in Leiria, sells merchandise “M”, subject to VAT at the standard
rate. The following information was extracted from the trial balance for December 31, 20xx
(but before VAT calculation):
DESCRIPTION DEBIT CREDIT
2432 VAT - Deductible 20 500,00 € 17 000,00 €
2433 VAT - Liquidated 27 156,00 € 31 556,00 €
2434 VAT - Regularizations 32,00 €
2435 VAT – Calculation 27 156,00 € 27 156,00 €
2436 VAT – Payable 10 000,00 € 11 000,00 €
2437 VAT – Recoverable 13 000,00 € 12 000,00 €
2438 VAT - Refunds requested 10 000,00 € 6 000,00 €
CLASSIFY THE FOLLOWING STATEMENT AS TRUE OR FALSE:
STATEMENT
1.1 The VAT settlement account has a credit balance of 850€, therefore we will
have VAT payable in that same amount.
1. **Problem Statement:**
We need to classify the statement about the VAT settlement account having a credit balance of 850 and whether this implies VAT payable of the same amount.
2. **Understanding VAT Settlement Account:**
The VAT settlement account balance is calculated as the difference between VAT liquidated (output VAT) and VAT deductible (input VAT).
3. **Calculate the balances:**
- VAT Deductible total debit = $20,500$
- VAT Deductible total credit = $17,000$
- VAT Liquidated total debit = $27,156$
- VAT Liquidated total credit = $31,556$
4. **Calculate net VAT Deductible:**
$$\text{Net VAT Deductible} = 20,500 - 17,000 = 3,500$$
5. **Calculate net VAT Liquidated:**
$$\text{Net VAT Liquidated} = 31,556 - 27,156 = 4,400$$
6. **Calculate VAT settlement account balance:**
$$\text{VAT settlement balance} = \text{Net VAT Liquidated} - \text{Net VAT Deductible} = 4,400 - 3,500 = 900$$
7. **Compare with given credit balance:**
The statement says the credit balance is 850, but our calculation shows 900.
8. **Conclusion:**
Since the calculated VAT settlement balance (900) does not match the stated credit balance (850), the statement is **FALSE**.
**Final answer:** The statement "The VAT settlement account has a credit balance of 850€, therefore we will have VAT payable in that same amount." is **FALSE**.