TAX2601 EXAM PACK.
TAX2601 - Principles Of Taxation
This is an all-inclusive guide to TAX2601 - Principles Of Taxation
Calculation of taxable income for the year of assessment ending 31 March 2017
R
-Cash sales 375 000
-Credit sales 4 600 000
-Purchases of inventory 2 940 000
-Local dividen...
The information contained in this document is confidential, privileged and only for the
information of the intended recipient and may not be used, published or redistributed
without the prior written consent of Overcomers Tutorials (Pty) Ltd.
The opinions expressed are in good faith and while every care has been taken in preparing
this document, Overcomers makes no representations and gives no warranties of whatever
nature in respect of this document, including but not limited to the accuracy or
completeness of any information, facts and/or opinions contained therein.
Overcomers Tutorials (Pty) Ltd, its subsidiaries, the directors, employees and agents
cannot be held liable for the use of and reliance of the opinions, estimates, forecasts and
findings in this document.
+27 60 690 8841 accatutor91@gmail.com Overcomers Tutorials
Downloaded by: biancakrugerbusiness | biancakrugerbusiness@gmail.com
Distribution of this document is illegal
NOVEMBER 2017
MAY/ JUNE 2017
NOVEMBER 2016
MAY/JUNE 2016
MAY/JUNE 2015
NOVEMBER 2015
MAY/JUNE 2014
NOVEMBER 2014
MAY/JUNE 2013
NOVEMBER 2013
+27 60 690 8841 accatutor91@gmail.com Overcomers Tutorials
Downloaded by: biancakrugerbusiness | biancakrugerbusiness@gmail.com
Distribution of this document is illegal
(Q1)
SMILEY (PTY) LTD
Calculation of taxable income for the year of assessment ending 31 March 2017
R
-Cash sales 375 000
-Credit sales 4 600 000
-Purchases of inventory 2 940 000
-Local dividends (exempt) nil
-Opening inventory (880 000)
-Closing inventory 620 000
-Salaries and wages (480 000)
-Pension fund contributions (48 000)
-Wear and tear: manufacturing machine AB (section 12E, deducted in full) (325 000)
-Delivery vehicle (section 12E, 30% x 70 000) no apportionment (21 000)
-Manufacturing building (section 13(1) erected after 1 January 1989, 5% is used,
5% x 1 700 000) (85 000)
-manufacturing machine BC, claimed in full in 2014 year of assessment (section 12E) nil
-Recoupment on manufacturing machine BC
Proceeds 30 000
Tax value (nil)
Cost 120 000
Accumulated wear and tear (120 000) 30 000
-Bad debts (9 000)
-Doubtful debt allowance, 2016 year of assessment 17 000
-Doubtful debt allowance, 2017 year of assessment (25% x 84 000) (21 000)
-Renewal of trademark (9 000)
-Acquisition of trademark (not allowed as deduction) nil
-Registration of trademark (65 000)
-Legal costs (prohibited, non-trade expenditure) nil
-Advertising costs (2 500)
TAXABLE INCOME BEFORE DONATIONS 756 500
-Donation, 100 000 (section 18A) limited to 10% of 756 500 (75 650) (75 650)
TOTAL TAXABLE INCOME 680 850
+27 60 690 8841 accatutor91@gmail.com Overcomers Tutorials
Downloaded by: biancakrugerbusiness | biancakrugerbusiness@gmail.com
Distribution of this document is illegal
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller SOLUTIONS2024. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.20. You're not tied to anything after your purchase.
