question 4

Question 4 20 Marks-36 minutes Celebration CC, a registered VAT vendor, is a large events organizing and catering business located in Katima Mulilo. The following transaction took place during the VAT period 01-2018 (Jan-Feb 2018): Invoiced Zambezi Regional Council for an event organized in February amounting to N$287,500 for which payment will only be received in March. Received a payment of N$92,000 from Ngoma Pty for an event to be held in March. Purchased fresh milk and maize meal from a local farmer for N$5,750. Purchased inventories on credit from Caterers Limited for N$23,000. Purchased inventories from Decors CC, a non-VAT vendor for N$5,750. Purchased a second-hand commercial cooking equipment from Simasiku Pawn Shop, a non-VAT vendor, for N$80,500 and paid in cash. Purchased a sedan from Zambezi Tayata (Pty) for N$172,500 to be used by the administrative personnel in the business operations Purchased a single-cab delivery truck from Sankwasa Motors for N$230,000. Received a payment of N$115,000 from a debtor, Extreme Adventures CC, for an ever organized and invoiced in 2017 (Assume that all parties are registered VAT-vendors and all amounts are VAT inclusive, un stated otherwise) Required Calculate the VAT payable/refundable by Celebration Cc for the VAT period 01-2018. (20)