TAX3701 Assignment 2
(COMPLETE ANSWERS)
Semester 2 2025 - DUE 18
September 2025
, TAX3701 Assignment 2 (COMPLETE
ANSWERS) Semester 2 2025 - DUE 18
September 2025
Taxation of Business Activities (TAX3701)
Institution
University Of South Africa (Unisa)
Book
A Student\'s Approach to Income Tax
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
(COMPLETE ANSWERS)
Semester 2 2025 - DUE 18
September 2025
, TAX3701 Assignment 2 (COMPLETE
ANSWERS) Semester 2 2025 - DUE 18
September 2025
Taxation of Business Activities (TAX3701)
Institution
University Of South Africa (Unisa)
Book
A Student\'s Approach to Income Tax
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
