TAX3701 – second assignment 2022 (sem 2)
Question 1
R
Furniture sales
Credit sales (R657 300 – R50 000) 607 300
The amount of R50 000 has not accrued to the taxpayer since the study desks
have not yet manufactured or been delivered to the client.
Cash sales – (R2 145 000 – R25 500) x 15/115 1 843 043
Cash sales to a client in Swaziland – zero rated 25 500
Inventory
Purchases Bilinga wood (XAF89 300 x R36.04) = (3 218 372)
(no deduction for the 2022 – the purchase was deductible in 2021
Opening stock – Bilinga woods (R3 218 372 x 70%) (2 252 860)
Purchases of small supplies ( 52 000)
Closing inventory @market value 289 000
Profit/loss on foreign transaction (R34.91 – R35.62) x R89 300 (3 181)
Leasehold Agreement
Rental expense – 1 April 2022 to 30 September 2022 (R8 000 X 6) (48 000)
1 October 2022 to 31 December 2022 (R8 000 x 1.02) x 3 (24 480)
Lease premium (R130 000/10) x 9/12 (9 750)
Leasehold improvement (R1 650 000/113 months) x 2 months (29 204)
Assets
Wood curving machine
Cost R136 000
Section 12 allowance (2022) (R136 000 x 40%) (R54 400) (54 400)
Tax value R81 600
Proceeds R131 000
Less: Tax value (R81 600)
Recoupment R49 400 49 400
Second-hand office printer
(R6 400 x 100/115) = R5 565
Section 11( e) allowance – value does not exceed R7 000 - (5 565)
Building 101 – section 13quin (R680 000 x 55% x 5%) (18 700)
Low-cost apartment sold to employees on loan accounts
Allowance claimed in the previous year
(R780 000 – R87 000) x 10% = R69 300
Allowance for current year
R780 000 – (R87 000 + 98 000) x 10% (56 500)
Recoupment –
lesser of amount repaid (R98 000) and (R69 300 + R56 500) = R138 600 98 000
Question 1
R
Furniture sales
Credit sales (R657 300 – R50 000) 607 300
The amount of R50 000 has not accrued to the taxpayer since the study desks
have not yet manufactured or been delivered to the client.
Cash sales – (R2 145 000 – R25 500) x 15/115 1 843 043
Cash sales to a client in Swaziland – zero rated 25 500
Inventory
Purchases Bilinga wood (XAF89 300 x R36.04) = (3 218 372)
(no deduction for the 2022 – the purchase was deductible in 2021
Opening stock – Bilinga woods (R3 218 372 x 70%) (2 252 860)
Purchases of small supplies ( 52 000)
Closing inventory @market value 289 000
Profit/loss on foreign transaction (R34.91 – R35.62) x R89 300 (3 181)
Leasehold Agreement
Rental expense – 1 April 2022 to 30 September 2022 (R8 000 X 6) (48 000)
1 October 2022 to 31 December 2022 (R8 000 x 1.02) x 3 (24 480)
Lease premium (R130 000/10) x 9/12 (9 750)
Leasehold improvement (R1 650 000/113 months) x 2 months (29 204)
Assets
Wood curving machine
Cost R136 000
Section 12 allowance (2022) (R136 000 x 40%) (R54 400) (54 400)
Tax value R81 600
Proceeds R131 000
Less: Tax value (R81 600)
Recoupment R49 400 49 400
Second-hand office printer
(R6 400 x 100/115) = R5 565
Section 11( e) allowance – value does not exceed R7 000 - (5 565)
Building 101 – section 13quin (R680 000 x 55% x 5%) (18 700)
Low-cost apartment sold to employees on loan accounts
Allowance claimed in the previous year
(R780 000 – R87 000) x 10% = R69 300
Allowance for current year
R780 000 – (R87 000 + 98 000) x 10% (56 500)
Recoupment –
lesser of amount repaid (R98 000) and (R69 300 + R56 500) = R138 600 98 000
