Answered step by step
Verified Expert Solution
Question
1 Approved Answer
QUESTION 1 - 25 marks Scott Resorts is registered for VAT and is a VAT Vendor. VAT of 14% is applicable. Scott Resorts owes SARS
QUESTION 1 - 25 marks Scott Resorts is registered for VAT and is a VAT Vendor. VAT of 14% is applicable. Scott Resorts owes SARS R80 000 at the beginning of September 2017 The following transactions took place during September 2017: Transactions: 1. Cash sales for September amounted to R171 000. 2. Purchased inventory on credit - R34 200. 3. Paid SARS 50 % of the amount owing at the beginning of September 2017 4. Paid salaries and wages by cheque - R30 000 5. Purchase a vehicle on credit - R342 000. 6. Paid the telephone account - R684. 7. Credit sales amounted to R18 240. 8. The owner took inventory R798 for his personal use. YOU ARE REQUIRED TO: 1. Record the above-mentioned transactions in the VAT Control account in the ledger. Balance the VAT Control account in the ledger 2. For each of the above-mentioned transactions also indicate on the answer sheet provided which account will be debited and which account will be credited as well as the applicable amount. (See first transaction). VAT CONTROL ACCOUNT Nr. Nr. 1. Bank 21 000 (9 marks) Nr. Account debited Account credited Amount R Amount R 1 Bank 171 000 Sales 150 000 2 3 4 5 6 7 8
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started