Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Read the following information carefully: - A company is a registered VAT vendor. The company is registered on the invoice basis for VAT purposes. -

image text in transcribed

image text in transcribed

image text in transcribed

Read the following information carefully: - A company is a registered VAT vendor. The company is registered on the invoice basis for VAT purposes. - All tax invoices were issued to customers correctly and all tax invoices received from suppliers complied with the requirements of Section 20 of the VAT Act. - All amounts include VAT at a rate of 15% unless otherwise stated. - The company supplied the following information for the period May to June 2023: Income - output tax: a Cash sale (VAT included), R242 000 b Credit sales (excluding VAT), R100 000 c Interest received from a South African bank, R23 800 Expenses - input tax: a Bank charges, R2 500 b Interest on bank overdraft (business account only), R3 500 c Fuel expenses (business purposes only), R27 500 d Entertainment expenses (business purposes only), R16 500 e Stock purchases - motor vehicle spares, R340 500 Required: Show all calculations/transactions and round off all amounts to the nearest rand. 5.1. List eight (8) distinct kinds of information that must be included on a tax invoice for VAT purposes. (8) 5.2 Calculate the output tax that must be shown on the 06/2023 VAT return using the following format: (4) 3 Calculate the input tax that must be shown on the 06/2023 VAT return using the following format for this purpose: (8) 4 Calculate the VAT payable by or refundable to the company on the 06/2023 VAT return. (3)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

CISA Certified Information Systems Auditor Practice Exams

Authors: Peter H. Gregory

1st Edition

1260459845, 978-1260459845

More Books

Students also viewed these Accounting questions