[TYPE THE COMPANY NAME]
TAX3701 Assignment
2 (COMPLETE
ANSWERS) Semester
2 2025 - DUE 18
September 2025
NO PLAGIARISM
[Pick the date]
[Type the abstract of the document here. The abstract is typically a short summary of the contents of
the document. Type the abstract of the document here. The abstract is typically a short summary of
the contents of the document.]
,Exam (elaborations)
TAX3701 Assignment 2 (COMPLETE
ANSWERS) Semester 2 2025 - DUE 18
September 2025
Course
Taxation of Business Activities (TAX3701)
Institution
University Of South Africa (Unisa)
Book
A Student\'s Approach to Income Tax
TAX3701 Assignment 2 (COMPLETE ANSWERS) Semester 2 2025 - DUE 18
September 2025; 100% TRUSTED Complete, trusted solutions and
explanations. Ensure your success with us.
Joseph Dlamini Manufacturers (Pty) Ltd (JDM) is a company manufacturing a
range of concrete products for the building industry in South Africa. JDM is a
registered VAT vendor, and its year of assessments ends on 31 March 2025.
JDM’s process of manufacturing has been approved by SARS and is not a
small business corporation as defined. All amounts are exclusive of VAT
unless stated otherwise. The accountant has compiled the following
information for the year of assessment ended on 31 March 2025. Description
Note Amount R Sales 1 Interest received 2 31 256 Dividends received 3 175
873 Insurance claim payment received 4 250 675 Sundry income 5 25 252
Cost of sales 6 () Salaries and wages 7 (3 871 350) Bad debts 8 (150 250)
Interest paid 9 (141 395) General expenses 10 (75 456) Depreciation 11 (750
400) Restraint of trade payment 12 (320 000) Donations made 13 (360 250)
Repairs and maintenance 14 (271 350) Insurance paid 15 (198 000) Rent
paid 16 (520 000) Property expenses 17 (5 850 250) Notes 1. Sales to South
African customers Included in the sales amount of R is a sale made to a
building contractor on 25 March 2025 amounting to R125 000. The building
contractor cancelled the sale due to cash flow problems and the all the
goods were returned to JDM on 26 March 2025. JDM has a gross profit
percentage of 25% to the cost of all manufactured concrete products. 2.
Interest received The interest received comprised the following: • Interest
levied on overdue debtors’ accounts – R15 126 • Interest received from
investments – R16 130 3. Dividend received The dividends received
comprised the following: • Dividends received from investments in a foreign
company – R175 998 JDM holds 5% of the shares in the foreign company. 4.
Insurance claim payment received JDM received an amount of R250 675
(including VAT) on 15 January 2025 from its insurance company for Machine
DP that was damaged beyond repair during normal operations. Machine DP
was purchased new on 4 April 2023 for R420 000 (excluding VAT) and
, brought into use on the same date. 5. Sundry income The sundry income
comprised the following: • Bad debts recovered from debtors written off
during the 2024 tax year – R25 252 6. Cost of sales The cost of sales amount
of R comprised the following: • Opening stock on 1 April 2024 – R4 251 327
(market value is R4 328 726) • Purchases of R • Closing stock on 31 March
2024 – R5 007 752 (market value is R4 812 538) The goods returned by the
debtor on 26 March 2024 with a sales value of R125 000, as indicated in note
1 above, has not been added back to the closing stock on 31 March 2025
and has not been considered in determining the market value of the closing
stock on 31 March 2025. The cost price and the market value of the returned
goods are the same. 7. Salaries and wages The salaries and wages amount
of R3 871 350 comprise the following: • Salaries and wages to all employees
– R3 551 900 • Company contributions to the pension fund for all employees
– R310 250 • Bribes paid to various traffic officials – R9 200 8. Bad debts The
bad debts amount comprised the following: • Actual bad debts of R15 250
relating to a debtor who was finally liquidated on 15 March 2025. • Doubtful
debts amounting to R135 000 on 31 March 2025. Only 80% of the R135 000
doubtful debts are in arears for less than 90 days. JDM received a doubtful
debt allowance of R75 670 in the 2024 years of assessment. 9. Interest paid
The interest paid amount of R141 395 comprised the following: • Interest
paid on long-term borrowing to finance capital assets – R141 395. 10.
General expenses The general expenses amount of R75 456 comprised the
following: • Advertising and marketing of new products – R75 456. 11.
Depreciation The depreciation amount of R750 400 relates to the following
capital assets: • New computer equipment of R390 000 (excluding VAT)
purchased on 1 May 2024 and brought into use on 1 June 2024. • Sewen new
delivery trucks were purchased on 1 June 2023 for a total amount of R3 565
000 (including VAT) and brought into use on the same day. • A second-hand
Machine OJ was purchased on 20 January 2025 for R720 000 (excluding VAT)
and brought into use on the same date. Machine OJ replaced Machine DP
(refer to note 4 above). • Binding general ruling No. 7 allows for the following
write-off periods: o Computer equipment – 3 years o Delivery trucks – 4 years
o Carports – 5 years 12. Restraint of trade payment JDM made a restraint of
trade payment of R390 000 on 31 January 2025 to Magic Ndlovu, the
marketing manager. This payment was made to restrain Magic Ndlovu from
competing with JDM for the next two years commencing on 31 January 2025.
13. Donations made The donations made of R360 250 comprised the
following: • R360 250 was donated to public benefit organisation and the
necessary section 18A income tax certificate was received on 25 March
2025. 14. Repairs and maintenance The repairs and maintenance amount of
R271 350 comprised the following: • R271 350 was spend on 1 February
2025 to erect ten carports for customer parking. 15. Insurance paid JDM paid
its annual insurance of R198 000 on 25 October 2024 for the period 1
November 2024 to 31 October 2025. 16. Rent paid JDM paid rent of R520
000 for additional warehouse storage for its manufactured products. 17.
Property expenses JDM purchased part of a new commercial building on 17
TAX3701 Assignment
2 (COMPLETE
ANSWERS) Semester
2 2025 - DUE 18
September 2025
NO PLAGIARISM
[Pick the date]
[Type the abstract of the document here. The abstract is typically a short summary of the contents of
the document. Type the abstract of the document here. The abstract is typically a short summary of
the contents of the document.]
,Exam (elaborations)
TAX3701 Assignment 2 (COMPLETE
ANSWERS) Semester 2 2025 - DUE 18
September 2025
Course
Taxation of Business Activities (TAX3701)
Institution
University Of South Africa (Unisa)
Book
A Student\'s Approach to Income Tax
TAX3701 Assignment 2 (COMPLETE ANSWERS) Semester 2 2025 - DUE 18
September 2025; 100% TRUSTED Complete, trusted solutions and
explanations. Ensure your success with us.
Joseph Dlamini Manufacturers (Pty) Ltd (JDM) is a company manufacturing a
range of concrete products for the building industry in South Africa. JDM is a
registered VAT vendor, and its year of assessments ends on 31 March 2025.
JDM’s process of manufacturing has been approved by SARS and is not a
small business corporation as defined. All amounts are exclusive of VAT
unless stated otherwise. The accountant has compiled the following
information for the year of assessment ended on 31 March 2025. Description
Note Amount R Sales 1 Interest received 2 31 256 Dividends received 3 175
873 Insurance claim payment received 4 250 675 Sundry income 5 25 252
Cost of sales 6 () Salaries and wages 7 (3 871 350) Bad debts 8 (150 250)
Interest paid 9 (141 395) General expenses 10 (75 456) Depreciation 11 (750
400) Restraint of trade payment 12 (320 000) Donations made 13 (360 250)
Repairs and maintenance 14 (271 350) Insurance paid 15 (198 000) Rent
paid 16 (520 000) Property expenses 17 (5 850 250) Notes 1. Sales to South
African customers Included in the sales amount of R is a sale made to a
building contractor on 25 March 2025 amounting to R125 000. The building
contractor cancelled the sale due to cash flow problems and the all the
goods were returned to JDM on 26 March 2025. JDM has a gross profit
percentage of 25% to the cost of all manufactured concrete products. 2.
Interest received The interest received comprised the following: • Interest
levied on overdue debtors’ accounts – R15 126 • Interest received from
investments – R16 130 3. Dividend received The dividends received
comprised the following: • Dividends received from investments in a foreign
company – R175 998 JDM holds 5% of the shares in the foreign company. 4.
Insurance claim payment received JDM received an amount of R250 675
(including VAT) on 15 January 2025 from its insurance company for Machine
DP that was damaged beyond repair during normal operations. Machine DP
was purchased new on 4 April 2023 for R420 000 (excluding VAT) and
, brought into use on the same date. 5. Sundry income The sundry income
comprised the following: • Bad debts recovered from debtors written off
during the 2024 tax year – R25 252 6. Cost of sales The cost of sales amount
of R comprised the following: • Opening stock on 1 April 2024 – R4 251 327
(market value is R4 328 726) • Purchases of R • Closing stock on 31 March
2024 – R5 007 752 (market value is R4 812 538) The goods returned by the
debtor on 26 March 2024 with a sales value of R125 000, as indicated in note
1 above, has not been added back to the closing stock on 31 March 2025
and has not been considered in determining the market value of the closing
stock on 31 March 2025. The cost price and the market value of the returned
goods are the same. 7. Salaries and wages The salaries and wages amount
of R3 871 350 comprise the following: • Salaries and wages to all employees
– R3 551 900 • Company contributions to the pension fund for all employees
– R310 250 • Bribes paid to various traffic officials – R9 200 8. Bad debts The
bad debts amount comprised the following: • Actual bad debts of R15 250
relating to a debtor who was finally liquidated on 15 March 2025. • Doubtful
debts amounting to R135 000 on 31 March 2025. Only 80% of the R135 000
doubtful debts are in arears for less than 90 days. JDM received a doubtful
debt allowance of R75 670 in the 2024 years of assessment. 9. Interest paid
The interest paid amount of R141 395 comprised the following: • Interest
paid on long-term borrowing to finance capital assets – R141 395. 10.
General expenses The general expenses amount of R75 456 comprised the
following: • Advertising and marketing of new products – R75 456. 11.
Depreciation The depreciation amount of R750 400 relates to the following
capital assets: • New computer equipment of R390 000 (excluding VAT)
purchased on 1 May 2024 and brought into use on 1 June 2024. • Sewen new
delivery trucks were purchased on 1 June 2023 for a total amount of R3 565
000 (including VAT) and brought into use on the same day. • A second-hand
Machine OJ was purchased on 20 January 2025 for R720 000 (excluding VAT)
and brought into use on the same date. Machine OJ replaced Machine DP
(refer to note 4 above). • Binding general ruling No. 7 allows for the following
write-off periods: o Computer equipment – 3 years o Delivery trucks – 4 years
o Carports – 5 years 12. Restraint of trade payment JDM made a restraint of
trade payment of R390 000 on 31 January 2025 to Magic Ndlovu, the
marketing manager. This payment was made to restrain Magic Ndlovu from
competing with JDM for the next two years commencing on 31 January 2025.
13. Donations made The donations made of R360 250 comprised the
following: • R360 250 was donated to public benefit organisation and the
necessary section 18A income tax certificate was received on 25 March
2025. 14. Repairs and maintenance The repairs and maintenance amount of
R271 350 comprised the following: • R271 350 was spend on 1 February
2025 to erect ten carports for customer parking. 15. Insurance paid JDM paid
its annual insurance of R198 000 on 25 October 2024 for the period 1
November 2024 to 31 October 2025. 16. Rent paid JDM paid rent of R520
000 for additional warehouse storage for its manufactured products. 17.
Property expenses JDM purchased part of a new commercial building on 17
