Instructions: All answers must be typed in and working must be shown.

QUESTION 3 Prudence Xaba is the owner of Sagacious (Pty) Ltd. The business is a registered VAT vendor and accounts for VAT on the invoice basis. The following information is an extract from the accounting records of Sagacious (Pty) Ltd for the December/January 2019 VAT period. Assume a standard VAT rate of 15%. All amounts include VAT unless VAT is not applicable. Transactions with non-vendors are indicated with an asterisk (*). Assume that all vendors have submitted valid source documents in accordance with the VAT Act (where applicable). Cheques issued: Particulars Allocation Amount (R) Cheque no. 201 TF Art Supplies Trading inventory 4 468,75 202 La Belle Entertainment 165,00 203 Air travel expense 962,50 Mango Liberty Owners 204 Life insurance 68,75 205 137,50 Agrimark William Simpson 206 Illuminating paraffin Delivery vehicle Staff water cooler 16 500,00 207 H2O 618,75 208 Plumbing 123 Repairs and maintenance 343,75 Debits on the bank statement: . Debit order for monthly insurance account, R4 812,50 Stop order for internet account, R7 562,50 Debit order for Entertainment expense, R275,00 . Credits on the bank statement: . Direct credit for cash sales, R130 625,00 Received R618,75 from J. Abrahim in part payment of his account (no discount) Receipts not included above: On 7 January 2019, an amount of R75 625,00 was transferred from Russia for goods, which were sold and transported to a registered business in that country. On 15 January 2019 an original cash invoice was issued for consultation income, R1 718.75. On 20 January 2019 equipment was sold for cash, R7 796,25. On 26 January 2019 the business received an insurance pay-out on stock sold, R10 697,50 . Other transactions Bad debts/credit losses written off, R35 598,75. Credit notes issued (on standard-rated goods previously sold), R117,15. On 12 January 2019 U. Ulengo purchased goods from Sagacious (Pty) Ltd for R27 500,00 on credit. The amount was still outstanding on 25 February 2019. . Required: Calculate the total input and output VAT which Sagacious (Pty) Ltd can claim or account for on the above-mentioned transactions for December/January 2019. In your answer, please indicate the VAT implication of each line item, even if the particular answer is R nil. QUESTION 3 Prudence Xaba is the owner of Sagacious (Pty) Ltd. The business is a registered VAT vendor and accounts for VAT on the invoice basis. The following information is an extract from the accounting records of Sagacious (Pty) Ltd for the December/January 2019 VAT period. Assume a standard VAT rate of 15%. All amounts include VAT unless VAT is not applicable. Transactions with non-vendors are indicated with an asterisk (*). Assume that all vendors have submitted valid source documents in accordance with the VAT Act (where applicable). Cheques issued: Particulars Allocation Amount (R) Cheque no. 201 TF Art Supplies Trading inventory 4 468,75 202 La Belle Entertainment 165,00 203 Air travel expense 962,50 Mango Liberty Owners 204 Life insurance 68,75 205 137,50 Agrimark William Simpson 206 Illuminating paraffin Delivery vehicle Staff water cooler 16 500,00 207 H2O 618,75 208 Plumbing 123 Repairs and maintenance 343,75 Debits on the bank statement: . Debit order for monthly insurance account, R4 812,50 Stop order for internet account, R7 562,50 Debit order for Entertainment expense, R275,00 . Credits on the bank statement: . Direct credit for cash sales, R130 625,00 Received R618,75 from J. Abrahim in part payment of his account (no discount) Receipts not included above: On 7 January 2019, an amount of R75 625,00 was transferred from Russia for goods, which were sold and transported to a registered business in that country. On 15 January 2019 an original cash invoice was issued for consultation income, R1 718.75. On 20 January 2019 equipment was sold for cash, R7 796,25. On 26 January 2019 the business received an insurance pay-out on stock sold, R10 697,50 . Other transactions Bad debts/credit losses written off, R35 598,75. Credit notes issued (on standard-rated goods previously sold), R117,15. On 12 January 2019 U. Ulengo purchased goods from Sagacious (Pty) Ltd for R27 500,00 on credit. The amount was still outstanding on 25 February 2019. . Required: Calculate the total input and output VAT which Sagacious (Pty) Ltd can claim or account for on the above-mentioned transactions for December/January 2019. In your answer, please indicate the VAT implication of each line item, even if the particular answer is R nil