Huntkey a resident of the Republic, sells and repairs watches from a shop he leases in a local shopping

centre. He is a sole proprietor and is registered for value$-$added tax on the invoice basis. An analysis of

Huntkey receipts and accruals and expenditure for his two$-$month tax period ending $30$ September $2021$

is set out below. Unless otherwise stated, all amounts are inclusive of value$-$added tax when applicable.

He makes solely taxable supplies.

Receipts and accruals

Sales of watches $207000$

Repairs of watches $29900$

Interest $5175$

Indemnity award $($note $1)51750$

Expenditure

Bad debts $($note $2)3225$

Bank charges $920$

Depreciation $($note $3)19145$

Insurance premiums $($note $4)3450$

Fuel $1495$

Printing and stationery $1564$

Purchases $($note $5)160245$

Salaries $41400$

Rentals $($note $6)13294$

Additional information:

$1.$ The indemnity award of R$51750$ was received by Huntkey from his insurer for two expensive

watches that were stolen from his shop in June $2021.$

$2.$ Bad debts of R$13225$ written off by Huntkeys, comprising the following:

$$ R$10350$ owing by one of his long$-$standing customers, from a credit sale. This

customer has since emigrated and he has been unable to trace her.

$$ R$2875$ was lent by him to an employee, who left town without repaying the loan.

$3.$ Depreciation $($for the two$-$month tax period$)$ is charged for the following assets owned Huntkeys

:

Manufacturing equipment that was purchased by him in a previous tax period for

R$276000($R$240000$ plus value$-$added tax of R$36000)$

$8000$

A computer that was purchased by him on $1$ August $2021$ for R$14375($R$12500$

plus value$-$added tax of R$1875)$

$695$

A motor car that was purchased by him on $1$ September $2021$ for R$632500$

$($R$550000$ plus value$-$added tax of R$82500).$ He has the sole use of it$.($He

$10450$

maintains accurate records of his travelling and can prove that his business

travelling is $40\%$ of his total travelling.$)$

$19145$

$4.$ Huntkeys insurance premiums of R$3450$ were incurred for the following assets that belong to

him:

Manufacturing equipment $460$

Office computer $230$

Motor car $1035$

Trading stock $1725$

$3450$

$5.$ Huntkeys purchases of R$160245$ are made up as follows:

Purchases of raw materials from vendors $126500$

Second$-$hand watches purchased $($and paid for$)$ from non$-$vendors $16675$

Second$-$hand watches purchased from vendors $17250$

$160425$

Huntkeys purchases second$-$hand watches from both vendors $($for example, auctioneers$)$ and

from non$-$vendors $($for example, private individuals and deceased estates$).$ He displays and

sells second$-$hand watches in his shop

$6.$ Huntleys rentals of R$13294$ are for the following items:

Shop premises $10925$

Cash register $1495$

Tea urn $($located in the shop for his employees and himself to make tea$)874$

$13294$

$7.$ Two overseas air tickets costing R$5800$ purchased by Huntkey were given to an employee and

his wife as part of the employee$$s salary package.

YOU ARE REQUIRED TO determine the value$-$added tax due to$,$ or from, SARS for Huntkeys$$ twomonth tax period that ended on $30$ September $2021.$