Question 1 (20 Marks) An accounting basis refers to the time that transactions are recorded for VAT purposes. This is done for the purposes of determining the VAT liability. The time of supply rule is used to determine whether a transaction has occurred for VAT purposes, as well as whether the VAT must be accounted for in a specific tax period.A client has approached you for assistance in understanding the difference between the invoices basis of accounting and the payment basis of accounting. Required: You are required to discuss to the client the difference between the invoice basis of accounting and the payment basis of accounting and explain to the client which accounting basis is generally used by a Vendor in South Africa. Compulsory sources to peruse;