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The following information relates to the attorney's practice, SA Attorneys. The practice is registered as a VAT vendor. VAT at 15% is included where applicable.
Problem 1: On 8 March 2021, a debit order for R989 in favour of SA Insurance (registered VAT vendor) in payment of vehicle insurance was deducted from the business bank account. The entry on 8 March 2021 in the book of first entry will be:
A. In the Bank column - R989, in the VAT output column - R129 and in the sundry accounts column - insurance of R860.
B. In the Bank column - R989, in the VAT output column - R129 and in the sundry accounts column - vehicles of R860.
C. In the Bank column - R989, in the VAT input column - R129 and in the sundry accounts column - vehicles of R860.
D. In the Bank column - R989, in the VAT input column - R129 and in the sundry accounts column - insurance of R860.
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