Question

WRITTEN ASSIGNMENT 3D PrintHub Ltd, is a one stop shop for 3D prints and consumables in Southern Africa. The following is an extract of the trial balance of 3D PrintHub Ltd at 30 June 2019: Additional Drl(Cr) R information Revenue (2 050 000) Cost of sales 1 150 000 Administration building at cost 1 200 000 1.1 31 1.1 1.2 Accumulated depreciation of administration building (120 000) Equipment: 3D printers at cost 700 000 Accumulated depreciation of equipment: 3D printers 1.2 (318 750) Trade receivables 2 377 200 Other income 3 (37 500) Other expenses 24 000 Additional information 1. Property, plant and equipment 1.1. Administration building On 1 July 2017 3D PrintHub Ltd acquired an administration building for R1 200 000. On this date it was available for use, as intended by management. The administration building is depreciated at 5% per annum according to the straight-line method. The SA Revenue Service does not allow a tax allowance on the administration building. 1.2. Equipment: 3D Printers 3D PrintHub Ltd replace their 3D printers on a regular basis in order to deliver high quality 3D printing services. On 31 December 2018 3D PrintHub Ltd sold old 3D printers for R280 000, which were originally acquired on 1 July 2017 at a cost price of R250 000. On acquisition date the old 3D printers were available for use, as intended by management, and also brought into use. On the date of sale the accumulated depreciation and accumulated tax allowances of the old 3D printers sold amounted to R93 750 and R75 000 respectively. The sale of the old 3D printers have not been recorded yet in the accounting records of 3D PrintHub Ltd. No other 3D printers were acquired or sold during the year. On 30 June 2019 the tax base of the remaining 3D printers, amounted to R270 000 3D printers are depreciated at 25% per annum according to the straight-line method, apportioned for part of the year. The SA Revenue Service allows a section 11(e) tax allowance on 3D printers in terms of the Income Tax Act over 5 years, apportioned for part of the year. ASSIGNMENT 01 (Second semester) continued) 2. Trade receivables The trade receivables account of 3D PrintHub Ltd at year end on 30 June 2019 consisted of the following: R Total amount outstanding 410 000 Allowance for credit losses (32 800) 377 200 The SA Revenue Service allows 25% of the allowance for credit losses as a deduction for tax purposes. In previous financial years 3D PrintHub Ltd made no allowance for credit losses because the company had no credit sales. 3. Other income 32

Pls I need help on this question because tomorrow is the deadline..

Answer 1

Working Note:
Calculation of dep for PPE:
Administration building:
cost	1200000
less:L dep for 2 years(120000*5%*2)	120000
Equipment 3Dprinters
cost on 1/7/2017	250000
less dep for 6 months(250000*25%*50%)	31250
WDV	218750
Sale proceeds	280000
profit on sale	61250
	450000
dep on remaining printers	112500

Sol (a):

a)calculation for profit before tax of 3D printer Hub ltd for the year ended 30june 2019
Revenue	2,050,000.00
Foreign income	37,500.00
profit on sale of 3D printers	61,250.00
Less:Cost of sales	1,150,000.00
Contribution or operating profit		998,750.00
less: operating expenses
dep	263,750.00
other exp	24,000.00
bad debt	32,800.00
software license fee	45,000.00	365,550.00
Profit before tax		633,200.00