Page 35 - Chapter 32 VAT Part 1
P. 35
Silke: Example 32.11.
A bank in S.A. received professional advice relating to their total business
from a company outside S.A.
The bank‟ s business entails the making of both taxable and exempt supplies
in a ratio of 80:20.
The non-resident company charges the bank R60 000 for such services and
the bank settled the expenditure.
REQUIRED
Provide the journal entries for the bank to account for the transaction.
Journal narations are not required.
Account Debit (R) Credit (R)
