Calculate the VAT amount that must be paid to SARS for the VAT period ended 31 May 2022. A. Harry, the clerk, calculated the VAT amount due to SARS as R55 785. However, he did not take the following into account: (i) VAT on goods returned to suppliers R5 070 (ii) VAT on expense paid R6 240 (iii) VAT on goods taken by Nomhle for personal use R5 400 B. VAT on discount allowed must also be taken into account. The total discount allowed amounted to R18 860. C. VAT on sales was incorrectly recorded. Certain goods with a selling price of R31 200 (excluding VAT) should have been recorded as zero-rated goods.

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Calculate the VAT amount that must be paid to SARS for the VAT period ended 31 May 2022 - NSC Accounting - Question 2 - 2022 - Paper 2

Question 2

Calculate the VAT amount that must be paid to SARS for the VAT period ended 31 May 2022. A. Harry, the clerk, calculated the VAT amount due to SARS as R55 785. How... show full transcript

Worked Solution & Example Answer:Calculate the VAT amount that must be paid to SARS for the VAT period ended 31 May 2022 - NSC Accounting - Question 2 - 2022 - Paper 2

Step 1

A. Calculate the adjusted VAT amount

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Answer

Start with the initial VAT amount calculated by Harry:

VAT_{initial} = R55,785

Next, adjust for:

VAT on goods returned to suppliers: R5,070
VAT on expenses: R6,240
VAT on goods taken for personal use: R5,400

Now, we can calculate the adjusted total:

VAT_{adjusted} = VAT_{initial} + VAT_{goods\,returned} + VAT_{expenses} + VAT_{personal} = 55,785 + 5,070 + 6,240 + 5,400 = R72,495

Subtract VAT on discounts allowed: R18,860

VAT_{final} = VAT_{adjusted} - VAT_{discounts} = 72,495 - 18,860 = R53,635

Step 2

B. Include VAT on sales adjustments

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Answer

Next, we need to calculate the VAT impact of incorrectly recorded sales:

For zero-rated sales:

VAT_{zero\text{-}rated} = 0 ext{ (since no VAT applies)}

Finalizing the VAT due to SARS:

VAT_{final} = R53,635 - R0 = R53,635

Therefore, the VAT amount due to SARS is R53,635.

Calculate the VAT amount that must be paid to SARS for the VAT period ended 31 May 2022 - NSC Accounting - Question 2 - 2022 - Paper 2

Worked Solution & Example Answer:Calculate the VAT amount that must be paid to SARS for the VAT period ended 31 May 2022 - NSC Accounting - Question 2 - 2022 - Paper 2

A. Calculate the adjusted VAT amount

B. Include VAT on sales adjustments

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