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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. The standard VAT rate is 15%. Nomhle also sells zero-rated goods. REQUIRED: Calc... 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 Adjustments to the VAT Amount
Answer
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Start with the VAT amount calculated by Harry: R55 785.
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Consider the adjustments:
- Add VAT on goods returned to suppliers: R5 070
- Add VAT on expenses paid: R6 240
- Add VAT on goods taken for personal use: R5 400
- Deduct VAT on discount allowed: R18 860.
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The formula for calculating the total VAT due is as follows:
[ \text{Total VAT Due} = R55 785 + R5 070 + R6 240 + R5 400 - R18 860 ]
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Thus, the calculation becomes:
[ \text{Total VAT Due} = R55 785 + R5 070 + R6 240 + R5 400 - R18 860 = R52 875 ]
Step 2