Assignment 2: 1st Semester
TAX2601 Unique number 880589
GROSS INCOME :
Sales 4,256,000.00
Interest income 28,320.00
LESS: EXEMPT INCOME
-
INCOME : 4,284,320.00
LESS: ALLOWABLE DEDUCTIONS
- GENERAL DEDUCTIONS :
6. Advertising prepayment : < R100000 OR
Within 6 Months after Yearend - 253,333.00
* R380000 for 1 July 2019 to 30 June 2020 - 126,667.00
Current Year 380000 x 8/12 = 253,333
Next Year 4 months = 126,667
5. Travel expenses - 40,000.00
- SPESIFIC DEDUCTIONS :
4. Employee pension fund contributions. - 125,000.00
Manufacturing machine -Repairs - 65,000.00
R95,000 Doubtful debt allowance 2019 95,000.00
3. Provision for Doubtful debts R400,000 25% 100,000 - 100,000.00
Bad debts written off R26,700 R3500 - Employee loan 23,200.00
not deductable
- CAPITAL ALLOWANCES :
1. Second-hand manufacturing machine 01-Aug-19 - 270,000.00
New machine Jan-20 - 320,000.00
2. Delivery vehicle : R289 999 Dec-18 50% Previous year 145,000
30% 87,000 - 87,000.00
New computer equiptment : R55 000 01-Jul-19 50% 27,500 - 27,500.00
7. Low cost residential units R1,350,000 5% Residential 67,500 - 135,000.00
5% lowcost 67,500
8. Patent R650,000 5% 32,500 - 32,500.00
9. Office construction & factory Office R350,000 5% 17,500 - 17,500.00
Factory R2,000,000 5% 100,000 - 100,000.00
TAXABLE INCOME BEFORE CAPITAL GAINS 1,581,300.00
ADD: TAXABLE CAPITAL GAINS -
TAXABLE INCOME : 2,703,020.00
R 58870 + 28% above R550000 R2 703 020 - R550 000 = R2 153 020 661,716.00
R2 153 020 x 28% = R602 846
R602 846 + R58 870 = R661 716
TAX2601 Unique number 880589
GROSS INCOME :
Sales 4,256,000.00
Interest income 28,320.00
LESS: EXEMPT INCOME
-
INCOME : 4,284,320.00
LESS: ALLOWABLE DEDUCTIONS
- GENERAL DEDUCTIONS :
6. Advertising prepayment : < R100000 OR
Within 6 Months after Yearend - 253,333.00
* R380000 for 1 July 2019 to 30 June 2020 - 126,667.00
Current Year 380000 x 8/12 = 253,333
Next Year 4 months = 126,667
5. Travel expenses - 40,000.00
- SPESIFIC DEDUCTIONS :
4. Employee pension fund contributions. - 125,000.00
Manufacturing machine -Repairs - 65,000.00
R95,000 Doubtful debt allowance 2019 95,000.00
3. Provision for Doubtful debts R400,000 25% 100,000 - 100,000.00
Bad debts written off R26,700 R3500 - Employee loan 23,200.00
not deductable
- CAPITAL ALLOWANCES :
1. Second-hand manufacturing machine 01-Aug-19 - 270,000.00
New machine Jan-20 - 320,000.00
2. Delivery vehicle : R289 999 Dec-18 50% Previous year 145,000
30% 87,000 - 87,000.00
New computer equiptment : R55 000 01-Jul-19 50% 27,500 - 27,500.00
7. Low cost residential units R1,350,000 5% Residential 67,500 - 135,000.00
5% lowcost 67,500
8. Patent R650,000 5% 32,500 - 32,500.00
9. Office construction & factory Office R350,000 5% 17,500 - 17,500.00
Factory R2,000,000 5% 100,000 - 100,000.00
TAXABLE INCOME BEFORE CAPITAL GAINS 1,581,300.00
ADD: TAXABLE CAPITAL GAINS -
TAXABLE INCOME : 2,703,020.00
R 58870 + 28% above R550000 R2 703 020 - R550 000 = R2 153 020 661,716.00
R2 153 020 x 28% = R602 846
R602 846 + R58 870 = R661 716
