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VAT The information relates to Nomhle Traders - NSC Accounting - Question 2 - 2022 - Paper 2
Question 2
VAT The information relates to Nomhle Traders. The business is registered for VAT. Calculate the VAT amount that must be paid to SARS for the VAT period ended 31 M... show full transcript
Worked Solution & Example Answer:VAT The information relates to Nomhle Traders - NSC Accounting - Question 2 - 2022 - Paper 2
Step 1
Calculate the total VAT amount to be considered
Answer
To calculate the VAT amount accurately, consider the initial amount calculated by Harry and adjust it with the necessary deductions and additions:
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Start with the initial amount calculated by Harry:
- Initial VAT Amount = R55 785
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Subtract the VAT amounts that were overlooked:
- VAT on goods returned to suppliers: R5 070
- VAT on expenses paid: R6 240
- VAT on personal goods: R5 400
Total adjustments = R5 070 + R6 240 + R5 400 = R16 710
Adjusted VAT = R55 785 - R16 710 = R39 075
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Include the VAT on the discount allowed:
- Discount allowed: R18 860
VAT on discount = 15% of R18 860 = R2 829
Adjusted VAT = R39 075 + R2 829 = R41 904
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Adjust for sales accounting discrepancies:
- Sales amount excluding VAT should have captured certain items as zero-rated. Thus, there will be no VAT from these sales.
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Final VAT amount due = R41 904.
Step 2
Confirm the figure for correct sales
Answer
Check the correct VAT calculation concerning the sales that were incorrectly recorded. Ensure all entries, including those meant to be zero-rated, are reconciled to reach:
Sales VAT = 0 (for zero-rated goods)
Thus, if this adjustment validates our calculations from earlier, conclude by confirming the final VAT amount:
Final Amount to be paid to SARS = R41 904