Calculate VAT payable to or refundable by the Commissioner for the VAT period ending 30 June. Show all workings. (round off to the nearest rand)
INFORMATION:
Aurora Enterprises, a vendor registered for VAT purposes on the invoice basis, provides the following information for the period May and June (all amounts, where applicable, include VAT at 14%, and tax invoices have been issued for all sales and, where applicable, received from all suppliers):
Extract from the cashbook and journals:
|
Cash receipts |
R |
|
Cash sales in the Republic |
8 200 000
|
|
Credit sales in the Republic |
2 500 000 |
|
Sales in Lesotho (delivery was made outside the Republic) |
1 350 000 |
|
Sales in Namibia (delivery was made outside the Republic) |
750 000 |
|
Cash Payments |
|
|
Bank charges |
135 000
|
|
Interest on bank overdraft |
14 000 |
|
Fuel |
230 000 |
|
Entertainment costs |
55 000 |
|
Cash purchases – stock |
1 900 000 |
|
Credit purchases – stock |
1 250 000 |
|
Rent paid |
720 000 |
|
Water and electricity paid |
240 000 |
|
Motor vehicle purchased |
180 000 |
|
Short term insurance premiums – fire , theft and stock |
24 000
|
Notes
1 A new delivery vehicle was purchased and delivered on 1 June under an instalment credit agreement. The purchase price was R600 000 (including VAT at 14%). The first payment of R60 000 was payable on 30 June and includes interest of R5 000.
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