Q8 - 1 A registered vendor sells inventory with a list price of C11 500. The VAT portion of the selling price is: a.C1 725 b.C1 500

Q8 - 2 Referring to zero-rated and exempt supplies 1. A registered vendor who sells zero-rated items may deduct the related input VAT paid when preparing its VAT return. 2. A registered vendor who sells exempt items may not deduct the related input VAT paid when preparing its VAT return. a 1 only is true b 2 only is true c 1 and 2 are both true d 1 and 2 are both false

Q8 - 3 Ashley George Motor Spares is a workshop that sells motor spares. During August 20X4, Ashley George Motor Spares purchased motor spares amounting to C160 000 (VAT exclusive) and sold motor spares for C80 000 (VAT exclusive). Salaries amounting to C30 000 for August 20X4 were paid to staff members. The input and output VAT for August 20X4 amounts to:

a C28 500 input VAT receivable and C12 000 output VAT payable b C24 000 output VAT payable and C28 500 input VAT receivable c C24 000 input VAT receivable and C12 000 output VAT payable d None of the above

Q8 - 4 The Oval Batting Academy buys and sells bats, protective pads and cricket clothing. Total purchases during July 20X4 amounted to C23 000, and sales during the same period amounted to C46 000. The amount of VAT payable to or recoverable from SARS as shown in the VAT control account at 31 July 20X4 is: a C3 450 payable b C3 000 recoverable c C3 450 recoverable d C3 000 payable

Q8 - 5 Manny Makhanya buys soccer balls from a local supplier and sells them to the general public: During June 20X4, Liam purchased soccer balls amounting to C115 000 from the supolier on credit. Manny sold soccer balls for C69 000 for cash to the public during June 20X4. The following information relates to questions 8-5-1 and 8-5-2. 8 - 5 - 1 The journal entry to record the purchase of the soccer balls during June 20X4 is: a. Inventory (A) 100 000 DR Input VAT receivable (A) 15 000 DR 115 000 CR Accounts payable (L)

b. Inventory (A) Input VAT receivable (A) Accounts payable (L) 97 750 DR 17 250 DR 115 000 CR

C. Inventory (A) Output VAT payable (L) Accounts payable (L) 115 000 DR 15 000 CR 100 000 CR

d. Inventory (A) Output VAT payable (L) Accounts payable (L) 115 000 DR 17 250 CR 97 750 CR

The journal entry to record the sale of the soccer balls during June 20X4 is: a. Cash (A) Input VAT receivable (A) Sales (1) Dr 60 000 9 000 Cr 69 000

b. Cash (A) Output VAT payable (L) Sales (1) 69 000 DR 9 000 CR 60 000 CR

c. Cash (A) Output VAT payable (L) Sales (1) 69 000 DR 10 350 CR 58 650 CR

d. Cash (A) Input VAT receivable (A) Sales (1) 58 650 DR 10 350 DR 69 000 CR