FAC3701 ASSIGNMENT 1 – SEMESTER 1 OF
2020
(a) MELLOW LTD
GENERAL JOURNAL
DR CR
R R
31 December 2019
Ordinary Dividends (SCE) 800 000
SA Revenue Service – Dividends Tax Payable (SFP) [(160 000 + 260 000) ∗ 20%] 84 000
Dividends payable (SFP) (800 000 − 84 000) 716 000
(b) Calculation of Deferred Tax for the year ended
Carrying Tax Base Temporary Deferred
Amount Difference Tax Asset /
Liability @
28%
31 December 2019 R R R R
Allowance for credit losses (𝑖) 150 000 37 500 (112 500) 31 500
Machinery [(𝑖𝑖𝑖) & (𝑖𝑣)] 900 000 768 000 132 000 (36 960)
19 500 (5 460)
31 December 2018
Prepaid expenses 30 000 - 30 000 (8 400)
Allowance for credit losses (𝑖) 100 000 25 000 (75 000) 21 000
Machinery (𝑖𝑖) 630 000 672 000 (42 000) 11 760
Assessed Loss - 240 000 (240 000) 67 200
(327 000) 91 560
Calculations
i. Allowance for Credit Losses – Tax Base
2019 = (150 000 ∗ 25%) = 𝑹𝟑𝟕 𝟓𝟎𝟎
2018 = (100 000 ∗ 25%) = 𝑹𝟐𝟓 𝟎𝟎𝟎
2020
(a) MELLOW LTD
GENERAL JOURNAL
DR CR
R R
31 December 2019
Ordinary Dividends (SCE) 800 000
SA Revenue Service – Dividends Tax Payable (SFP) [(160 000 + 260 000) ∗ 20%] 84 000
Dividends payable (SFP) (800 000 − 84 000) 716 000
(b) Calculation of Deferred Tax for the year ended
Carrying Tax Base Temporary Deferred
Amount Difference Tax Asset /
Liability @
28%
31 December 2019 R R R R
Allowance for credit losses (𝑖) 150 000 37 500 (112 500) 31 500
Machinery [(𝑖𝑖𝑖) & (𝑖𝑣)] 900 000 768 000 132 000 (36 960)
19 500 (5 460)
31 December 2018
Prepaid expenses 30 000 - 30 000 (8 400)
Allowance for credit losses (𝑖) 100 000 25 000 (75 000) 21 000
Machinery (𝑖𝑖) 630 000 672 000 (42 000) 11 760
Assessed Loss - 240 000 (240 000) 67 200
(327 000) 91 560
Calculations
i. Allowance for Credit Losses – Tax Base
2019 = (150 000 ∗ 25%) = 𝑹𝟑𝟕 𝟓𝟎𝟎
2018 = (100 000 ∗ 25%) = 𝑹𝟐𝟓 𝟎𝟎𝟎
