NSC Accounting Inventory systems: 3.1 VAT CONCEPTS
Change the und

Question

3.1  VAT CONCEPTS
Change the underlined parts in the following sentences to make the statements TRUE. Write the answer next to the question number (3.1.1–3.1.3) in the ANSWER BOOK.

3.1.1  Input VAT is VAT charged to customers.

3.1.2  VAT is payable to the South African Reserve Bank.

3.1.3  VAT is charged at 14% on fruits and vegetables.

3.2  VAT CALCULATIONS
Wandle Traders is a VAT registered business. The standard rate of VAT is 14%.

REQUIRED:
Calculate the correct amount of VAT the business has to pay. Show ALL workings.

INFORMATION:
The bookkeeper, Felix, prepared the VAT Control Account for the tax period ended 31 May 2015 and arrived at a VAT payable amount of R43 820.

However, the internal auditor has identified the following errors and omissions which must still be brought into account to calculate the correct VAT payable amount:

A.  Sales invoices omitted from the Debtors’ Journal, including VAT  R10 830  
B.  Damaged goods returned to suppliers, excluding VAT  R16 600  
C.  VAT on sundry business expenses omitted  R6 818  
D.  VAT on discounts received from suppliers  R756  
E.  VAT on bad debts recovered  R112  
F.  VAT on the VAT Control Account  R92

3.1 VAT CONCEPTS Change the underlined parts in the following sentences to make the statements TRUE - NSC Accounting - Question 3 - 2016 - Paper 1

Worked Solution & Example Answer:3.1 VAT CONCEPTS Change the underlined parts in the following sentences to make the statements TRUE - NSC Accounting - Question 3 - 2016 - Paper 1

3.1.1 Input VAT is VAT charged to customers.

3.1.2 VAT is payable to the South African Reserve Bank.

3.1.3 VAT is charged at 14% on fruits and vegetables.

Calculate the correct amount of VAT the business has to pay. Show ALL workings.

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