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Calculate the correct amount of VAT the business has to pay

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Wandile Traders is a VAT registered business. The standard rate of VAT is 14%.

The bookkeeper, Felix, prepared the VAT Control Account for the tax period ended 31 May 2015 and arrived at a VAT payable amount of R43 820.   However, the internal auditor has identified the following errors and omissions which must still be brought into account to calculate the correct VAT payable amount:

A. Sales invoices omitted from the Debtors' Journal, including VAT R10 830
B. Damaged goods returned to suppliers, excluding VAT   18 600
C. VAT on sundry business expenses omitted     6 818
D. VAT on discounts received from suppliers       756
E. VAT on bad debts recovered       112
F. VAT on bad debts was recorded on the wrong side of the VAT Control Account         92

1 Answer

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Best answer

Calculate the correct amount of VAT the business has to pay. Show ALL workings

43 820 + (1 330 + 2 604+ 112 + 756 ) – (184 + 6 818 )
                       4 802                                    7002
=41 620 

OR 43 820  + 1 330 + 2 604 + 112 + 756 – 184 - 6 818 

OR -43 820  - 1 330 - 2 604 - 112 - 756 +  184 + 6 81

VAT Control
184 43 820
6 818 1 330
41 620 2 604
112
756
48 622 48 622

answered by Master (629k points)
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