The following information relates to the attorneys practice, SA Attorneys. The practice is registered as a VAT vendor. VAT at 15% is included where applicable.

On 6 January 2020, A South, a client settled his account. An amount of R1 150 was deposited directly into the business bank account. The amount that should be recorded in the VAT output column of the business cash receipts journal will be

A. R0 because the amount should be entered into the VAT input account in the BCRJ B. R172,50 C. R150 D. R0 because the VAT output was recognised when the fees charged were recorded in the fees journal