[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
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
