Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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). Cheaues issued: Debits on the bank statement: - Debit order for monthly insurance account, R4812,50 - Stop order for internet account, R7562,50 - 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, R1718.75. - 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, R10697,50 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). Cheaues issued: Debits on the bank statement: - Debit order for monthly insurance account, R4812,50 - Stop order for internet account, R7562,50 - 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, R1718.75. - 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, R10697,50
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