MK Plumbing (MKP) is a company with a financial year end of 28 February. The company...
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MK Plumbing (MKP) is a company with a financial year end of 28 February. The company is a registered value added tax (VAT) vendor. MKP entered into the following transactions for the July 2019 year of assessment. All transactions took place between vendors and the company is in possession of all the necessary documentation. All amounts are stated inclusive of VAT where applicable. Assume a standard rate of 15%. 1. Sales of services totalling R14 000. 2. An insurance receipt of R200 000 for a motor vehicle which was stolen and R50 000 for the equipment which was in the vehicle at the time of its theft. 3. Purchase of a new motor vehicle for R315 000. The insurance proceeds were used to acquire this vehicle and the balance was financed. Interest charged for the year on the balance financed amounted to R9 000. 4. Fuel for MKP's fleet of company vehicles totalling R25 000. 5. Bad debts written-off of R3 500. 6. Bad debts recovered of R1 200. 7. Wages and salaries totalling R2 400 000. 8. Purchase of new leak detection equipment and gas for leak detection amounting to R9 200. 9. Plumbing tools and consumables costing R1 800. 10. Bank charges on bank accounts of R500. 11. Plumbing association fees of R3 000 and the managing director's athletics club association fee of R300. (a) Calculate the input value added tax (VAT) and output VAT arising from each of the transactions. Round off your answers to the nearest Rand MK Plumbing (MKP) is a company with a financial year end of 28 February. The company is a registered value added tax (VAT) vendor. MKP entered into the following transactions for the July 2019 year of assessment. All transactions took place between vendors and the company is in possession of all the necessary documentation. All amounts are stated inclusive of VAT where applicable. Assume a standard rate of 15%. 1. Sales of services totalling R14 000. 2. An insurance receipt of R200 000 for a motor vehicle which was stolen and R50 000 for the equipment which was in the vehicle at the time of its theft. 3. Purchase of a new motor vehicle for R315 000. The insurance proceeds were used to acquire this vehicle and the balance was financed. Interest charged for the year on the balance financed amounted to R9 000. 4. Fuel for MKP's fleet of company vehicles totalling R25 000. 5. Bad debts written-off of R3 500. 6. Bad debts recovered of R1 200. 7. Wages and salaries totalling R2 400 000. 8. Purchase of new leak detection equipment and gas for leak detection amounting to R9 200. 9. Plumbing tools and consumables costing R1 800. 10. Bank charges on bank accounts of R500. 11. Plumbing association fees of R3 000 and the managing director's athletics club association fee of R300. (a) Calculate the input value added tax (VAT) and output VAT arising from each of the transactions. Round off your answers to the nearest Rand
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Accounting for Governmental and Nonprofit Entities
ISBN: 978-0078025822
17th edition
Authors: Jacqueline Reck, Suzanne Lowensohn, Earl Wilson
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