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The owner of Morongoe Traders has requested you to assist with the calculation of VAT payable to SARS or receivable from SARS.The bookkeeper did
The owner of Morongoe Traders has requested you to assist with the calculation of VAT payable to SARS or receivable from SARS.The bookkeeper did not take into account all the transactions and errors were also identified in some transactions. The incorrect amount of VAT payable at the end of July 2021 amounted to R50 500. The business makes use of invoice basis to record the VAT transactions and VAT is charged at the standard rate of 15%. REQUIRED Calculate the correct amount of VAT payable or receivable and show calculations. NOTE: The business uses a mark-up of 50% on cost. Errors and transactions that were not taken into account: A. Bought cleaning equipment on credit for R5 175, VAT inclusive. B. Bought stationery for R3 000 (VAT exclusive) from Gauteng Suppliers, received invoice no.56. C. Sent a debit note to Jozi Wholesalers, they omitted a discount that was allowed on the supplies. VAT on discounted amount was, R650. D. A debtor returned goods with the selling price of R805 (VAT inclusive). E. Receive a payment from a debtor in settlement of his account of R9 200, allowed him a discount of 5%. F. Sold goods on credit for R20 125. The tax invoice reflected VAT on sales as R2 625. This was posted to the ledger as R2 265. G. VAT on bad debts amounted to R75. H. A sale of R8 100 (VAT inclusive) was not recorded. This amount included the zero rated goods of R1 200. The owner took goods for personal use, the selling price is R4 500 (VAT exclusive) 20
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