Gordon Reese

08/01/2024 · Middle School

Equipo Ltd, a registered VAT vendor, purchased equipment on a 90 day credit account from Tops (Pty) Ltd for R110 400 (inclusive of VAT at 15\%). Which of the following statements is correct to record the purchase of the equipment in the accounting records of Equipo Ltd. Tops (Pty) Ltd is also a registered VAT vendor. \( \{\mathrm{a} / \mathrm{c}= \) account.\} A. Debit: Equipment a/c R96 000: Debit: VAT input A/C R14 400; Credit: Creditors' Control a/c: Tops (Pty) Ltd R110 400. B. Debit: Equipment a/c R110 400; Debit: VAT input a/c R16 560; Credit: Creditors control: Tops (Pty) Ltd a/c R126 960. C. Debit: Equipment a/c R126 960: Credit: VAT output a/c R16 560; Credit: Creditors control: Tops (Pty) Ltd a/c R110 400 . D. Debit: Equipment a/c R110 400; Credit: VAT output a/c R14 400; Credit: Creditors' Control a/c R124 800;