,TAX3701 Assignment 2 COMPLETE ANSWERS) Semester
1 2025 - DUE 17 April 2025 ; 100% trusted, comprehensive
and complete reliable solution with clear explanation
QUESTION 1 (30 marks, 54 minutes)
Lucky Dlamini Steel (Pty) Ltd (LDS) manufactures a wide
variety of steel products for the building industry in South
Africa. LDS is a small business corporation as defined in the
Income Tax Act. LDS’s financial year ends on 28 February
2025 and the company is also a registered VAT vendor. LDS
only makes taxable supplies and have all the valid tax invoices
in support of expenses incurred and payments made.
The accountant provides you with the following information for
the two-month VAT period ending on 28 February 2025. All
amounts stated excludes VAT, unless specifically stated
otherwise:
INCOME/RECEIPTS
NOTE
AMOUNT
R
Sales to South African customers
1
1 575 000
Sales to customers in Germany
85 000
, Receipt from Naidoo Attorneys
2.18 975
Interest received on investments
5 780
Insurance payment received
3 189 750
Rent received
4 75 500
EXPENSES/PAYMENTS MADE
Bank charges
3 790
Interest paid to AZN Bank
9 820
Steel sheets purchases for South African suppliers
5 950 350
New single cab bakkie purchased from a registered VAT vendor
6. 425 500
Steel cutting machine purchased
7.95 000
A new coffee machine purchased for the canteen
25 750
1 2025 - DUE 17 April 2025 ; 100% trusted, comprehensive
and complete reliable solution with clear explanation
QUESTION 1 (30 marks, 54 minutes)
Lucky Dlamini Steel (Pty) Ltd (LDS) manufactures a wide
variety of steel products for the building industry in South
Africa. LDS is a small business corporation as defined in the
Income Tax Act. LDS’s financial year ends on 28 February
2025 and the company is also a registered VAT vendor. LDS
only makes taxable supplies and have all the valid tax invoices
in support of expenses incurred and payments made.
The accountant provides you with the following information for
the two-month VAT period ending on 28 February 2025. All
amounts stated excludes VAT, unless specifically stated
otherwise:
INCOME/RECEIPTS
NOTE
AMOUNT
R
Sales to South African customers
1
1 575 000
Sales to customers in Germany
85 000
, Receipt from Naidoo Attorneys
2.18 975
Interest received on investments
5 780
Insurance payment received
3 189 750
Rent received
4 75 500
EXPENSES/PAYMENTS MADE
Bank charges
3 790
Interest paid to AZN Bank
9 820
Steel sheets purchases for South African suppliers
5 950 350
New single cab bakkie purchased from a registered VAT vendor
6. 425 500
Steel cutting machine purchased
7.95 000
A new coffee machine purchased for the canteen
25 750
