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.
REQUIRED:
Calculate the VAT amount that must be paid to SARS for the VAT period en... show full transcript
Worked Solution & Example Answer:VAT
The information relates to Nomhle Traders - NSC Accounting - Question 2 - 2022 - Paper 2
Step 1
VAT on goods returned to suppliers
96%
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Answer
VAT on goods returned to suppliers is calculated as R5 070. This amount needs to be deducted from the initial total calculated by Harry.
Step 2
VAT on expenses paid
99%
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Answer
The VAT on expenses paid is R6 240, which also needs to be accounted for in the final calculation.
Step 3
VAT on goods taken by Nomhle for personal use
96%
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Answer
This VAT amount is R5 400 and should additionally be deducted from Harry's calculation.
Step 4
VAT on discount allowed
98%
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Answer
VAT on the discount allowed, which is a total of R18 860, should be included in the calculations to determine the final VAT amount payable.
Step 5
Final VAT amount calculation
97%
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Answer
Starting from Harry's total of R55 785:
extTotalVAT=55,785−5,070−6,240−5,400+18,860
Calculating this gives:
extTotalVAT=R52,875
This is the final VAT amount that must be paid to SARS for the specified period.
