Breeze (Pty) Ltd is a registered VAT vendor and accounts for VAT on the invoice basis. You
Question:
Breeze (Pty) Ltd is a registered VAT vendor and accounts for VAT on the invoice basis. You have been supplied with the following information for the September/October 2023 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). Sep/Oct invoices received: Invoice Date Particulars Allocation Amount 1/09/23 Axle supplies Trading inventory R 86 326.46 2/09/23 The Catering Company Office refreshments 3 742.22 7/09/23 CellU Telephone 4 875.48 12/09/23 The Western Municipality Property assessment rates 1 849.62 Amenities/services 974.32 15/09/23 Max Garage Petrol 3 250.00 19/09/23 Sparkle Stationers Business cards 2 894.60 25//09/23 The Traffic department Vehicle over-loading fine 1 750.00 01/10/23 Clever Computers Office computer 24 986.50 05/10/23 Fridgeland Staff room fridge 8 742.68 10/10/23 Quick Couriers Courier fees 1 052.44 31/10/23 B. Rex Maintenance services* 846.22 Additional Sep/Oct debits on the bank statement: Debit order for Sep/Oct short-term insurance, R 1 569.45 Bank fees, R 658.76 Interest on overdraft, R 135.00. Animal welfare donation of R 500.00 Settlement of creditor invoice dated 25 Aug 2023, R 10 845.60 SARS VAT payment, R 3 185.50 Sep/Oct credits on the bank statement: Receipt no's 8745 to 9143 for cash sales, R 987 624.33 Received R 10 124.88 from E Finnegan in settlement of his outstanding invoice dated 30 June 2023 (no discount given) Receipts not included above: On 4 October 2023, an amount of R 185 625.44, was received from Argentina for goods, which were exported there and invoiced on 1 October 2023 On 8 October 2023, an original cash invoice was issued for consulting income of R 15 678.24. On 13 October 2023, office computers were sold for cash of R 18 426.33. On 29 October 2023, the business received an insurance pay-out on stock damaged in an accident, R 106 425.33 Other Sep/Oct transactions Credit losses written off on Standard-rated supplies, R 4 326.55 Credit notes issued (on standard-rated goods previously sold), R 3 024.12 On 31 October 2023 a journal entry was processed for interest of R 2 156.55 on the overdue account of a debtor. On 17 September 2023 Marsh Ltd purchased goods on credit from Breeze (Pty) Ltd for R 58 625.34. The amount was still outstanding on 31 October 2023. Required: 3.1. Calculate the total input and output VAT which Breeze (Pty) Ltd can claim or account for on the above-mentioned transactions for September/October 2023. In your answer, please indicate the VAT implication of each line item, even if the particular answer in R nil.
Fundamental Accounting
ISBN: 9781485112112
7th Edition
Authors: David Flynn, Carolina Koornhof, Ronald Arendse, Anna C. E. Coetzee, Edwardo Muriro, Louise Christel Posthumus, Louise Mancy Smit