Please, how do is VAT and WHT accounted for in the books of a non profit making organisation. For example, Mr Food supplies Snacks to New Association (a non profit making organisation) for N50,000. VAT is 10% while WHT is 5%. How will New Association account for this transaction in its books?
This is not an F6 question nor does it actually make sense as there would be no Withholding Tax (WHT) on such a transaction! Please keep questions relevant to the F6 UK examination.