FAC3701 ASSIGNMENT 2 – SEMESTER 2 OF
2020
1. 4
R
Increase in opening inventory (1 316 000 − 1 280 000) 36 000
Increase in closing inventory (1 620 000 − 1 400 000) (220 000)
Decrease in closing inventory (184 000)
2. 4
SA Revenue Service indicated that they will not reopen previous years` tax
assessments, therefore, for all the previous years, the inventory`s tax base will be
according to the old method.
3. 1 [(974 000 − 914 000) ∗ 72% = 𝑹𝟒𝟑 𝟐𝟎𝟎
4. No answer
5. 2
2018
R
Decrease in accounts receivable 1 156 000
Decrease in current tax due / liability (SA Revenue Service
(1 156 000 ∗ 28%) (323 680)
Decrease in equity 832 320
6. 1
R
Cost – 1 March 2018 1 920 000
Depreciation – 29 February 2019 (1 920 000 ∗ 20%) (384 000)
Carrying amount – 29 February 2019 1 536 000
1 536 000
7. 1 ( ) = 𝑹𝟓𝟏𝟐 𝟎𝟎𝟎
3
2020
1. 4
R
Increase in opening inventory (1 316 000 − 1 280 000) 36 000
Increase in closing inventory (1 620 000 − 1 400 000) (220 000)
Decrease in closing inventory (184 000)
2. 4
SA Revenue Service indicated that they will not reopen previous years` tax
assessments, therefore, for all the previous years, the inventory`s tax base will be
according to the old method.
3. 1 [(974 000 − 914 000) ∗ 72% = 𝑹𝟒𝟑 𝟐𝟎𝟎
4. No answer
5. 2
2018
R
Decrease in accounts receivable 1 156 000
Decrease in current tax due / liability (SA Revenue Service
(1 156 000 ∗ 28%) (323 680)
Decrease in equity 832 320
6. 1
R
Cost – 1 March 2018 1 920 000
Depreciation – 29 February 2019 (1 920 000 ∗ 20%) (384 000)
Carrying amount – 29 February 2019 1 536 000
1 536 000
7. 1 ( ) = 𝑹𝟓𝟏𝟐 𝟎𝟎𝟎
3
