Question 2 (15 marks) Fine Furniture (Pty) Ltd, a VAT-registered vendor registered on the w had...
Question 2 (15 martes) Furniture (Pty), a VAT red vendor registered in the words had the following transactions for the month of Jure 2020. morts are inclusive VAT (159), excepted otherwise we VAT applicable. The business uses the perpetual system when went to inventary a) b) c) on 9 June, the owner took home a coffee table, which was meant for sale for his personal use. This coffee table had a sing price of R10 525 (VAT-Inclusive and a margin...
Assignment (AFACO2-6/S2 10/2020) Total: 70 marks Note to student: You will be penalised for the copying of theory without explanation/application to the scenario provided. You should use the theory in support of your own answer. Non-application will result in a zero mark being awarded SECTION A (70 MARKS) - PARAGRAPH QUESTIONS Answer the following questions: Question 1 (10 marks) The following information is given for Fine Furniture (Pty) Ltd, a VAT-registered vendor. VAT is at 15%. No. Mark-up or margin...
Question 4 Toys4All (Pty) ltd (“Toys4All or the company”) is a registered Value –Added Tax (VAT) vendor and has a two-month tax period. Toys4All operates as a wholesaler of toys that are supplied both local and foreign retailers.The following income and expenditure amounts, inclusive of vat where applicable, have been generated for the tax period 1 Jan 2020 to 29 Feb 2020:RINCOMELocal sales 1,524,900 Export sales 250,000 Interest on loan to a resident subsidiary company 3,450 Bad debts recovered...
Question 4 Toys4All (Pty) ltd (“Toys4All or the company”) is a registered Value –Added Tax (VAT) vendor and has a two-month tax period. Toys4All operates as a wholesaler of toys that are supplied both local and foreign retailers.The following income and expenditure amounts, inclusive of vat where applicable, have been generated for the tax period 1 Jan 2020 to 29 Feb 2020:RINCOMELocal sales 1,524,900 Export sales 250,000 Interest on loan to a resident subsidiary company 3,450 Bad debts recovered...
Question 2 (Marks: 15) Chopin (Pty) Ltd ordinarily pays their employees a bonus in the form of a thirteenth cheque together with their December pay. This has created a constructive obligation on their part to recognise the liability. Chopin (Pty) Ltd only pays the bonus if the employee is still working for the company on 31 December of each year. Any employees joining the company during the year are paid a pro-rata (proportional) amount of their bonus. On 1 January...
Question 4 (30 marks) The following represents the financial statements of Cash Smart (Pty) Ltd. Us the information contained therein and other information provided to answer the questions that follow Statement of Comprehensive Income for Cash Smart (Pty) Ltd for the year ended 30 June 2020 RODO Sales revenue 95 576 Cost of sales 62 000 Gross profit 33 576 Other operating Income 6 000 Gross operating pront 39 576 Operating expenses 35 250 4326 Operating pro Financing costs 2...
Question 4 (30 marks) The following represents the financial statements of Cash Smart (Pty) Ltd. Use the information contained therein and other information provided to answer the questions that follow: Statement of Comprehensive Income for Cash Smart (Pty) Ltd for the year ended 30 June 2020 R'000 95 576 62 000 33 576 6 000 39 576 Sales revenue Cost of sales Gross profit Other operating income Gross operating profit Operating expenses Operating profit Financing costs Profit before taxation Taxation...
QUESTION 2 (15 Marks) Maroela (Pty) Ltd is a small perishable grocer operating out of Centurion in Gauteng. It was established nearly 30 years ago. Lately the operation has been under margin & volume pressure from the bigger chain stores operating in the greater Pretoria area. Last month the Maroela had revenues (sales) of R220 000, a C/M ratio of 40% and a M/S ratio of 30%. During the current month, a decrease in sales price and a decrease in...
Company Name: Abcde Pty Ltd The company began operations as a retailer on 1 July 2017. It buys and sells one inventory item, derrings, from a leased warehouse in the outer suburbs of Melbourne. The company is registered for GST which it pays quarterly. Assume GST was last paid on 30 June. It uses the Weighted Average cost allocation method and the perpetual inventory recording method. The company uses the straight line depreciation method for office furniture and computers and...
Question 1During the 2020 year of assessment Harley Davidson (married out of community of property), a resident of the Republic, made the following donations ( assume that all legal formalities were complied with at the date of each donation): 1. On 1 March 2019 he gave his wife, Pearl, a pair of diamond earrings valued at R 25 000.2. On 25 April 2019, he gave his youngest son, Carl, the lifetime usufruct on this date was R 1 356 000.3. On...