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Ndlovu Jam Ltd is a company specializing in the manufacturing of various types of jams and sauces. The following is an extract of Ndlovu Jam

Ndlovu Jam Ltd is a company specializing in the manufacturing of various types of jams and sauces.
The following is an extract of Ndlovu Jam Ltds trial balance for the year ended 31 December 2023: Notes Debit
R Credit
R
Administration building cost 1.11500000
Delivery vehicles cost 1.21150000
Administration building accumulated depreciation 1.1150000
Delivery vehicles accumulated depreciation 1.2330000
Trade receivables 2115000
Profit before tax 3962000
Additional information
1. Property, plant and equipment 1.1 Administration building
Ndlovu Jam Ltd acquired an administration building at a cost of R1500000 on 1 January 2022. On this date the administration building was available for use as intended by management. The administration building has a residual value of Rnil and is depreciated over 20 years according to the straight-line method. The SA Revenue Service does not allow a capital allowance on the administration building. 1.2 Delivery vehicles On 1 January 2023 Ndlovu Jam Ltd purchased a new delivery vehicle for R650000. The delivery vehicle was available for use, as intended by management, and brought into use on this date. Ndlovu Jam Ltd sold a delivery vehicle for R550000 at year end on 31 December 2023. The delivery vehicle was originally acquired on 1 January 2022 at a cost price of R500000. The delivery vehicle was available for use, as intended by management, and brought into use on this date. On the date the delivery vehicle was sold, the accumulated depreciation amounted to R200000. Only the following journal entry was recorded for the sale of the delivery vehicle in the accounting records of Ndlovu Jam Ltd for the year ended 31 December 2023: Bank (SFP)550000 dr Sale of delivery vehicle (P/L)550000 cr Recording of sale of delivery vehicle.
The delivery vehicles are depreciated according to the straight-line method over five (5) years with no residual value.
The SA Revenue Service allows a capital allowance over four (4) years (not pro-rata) on the delivery vehicles.
No other delivery vehicles were acquired or sold during the year.
2. Trade receivables are as follows:
20222023
Trade receivables 130000150000
Allowance for credit losses (25000)(35000)
105000115000
The SA Revenue Service allows 25% of the allowance for credit losses as a deduction. Actual credit losses incurred are written off directly to the statement of profit or loss and other comprehensive income and not against the allowance for credit losses.
3. Profit before tax
Included in profit before tax are 2023
Foreign income received from China. The foreign income is not 180000
taxable in South Africa in terms of a double taxation agreement
Ndlovu Jam Ltd paid foreign taxes of R27000 on this income.
Allowance for credit losses (refer 2)10000
Sale of delivery vehicle (refer 1.2)550000
Donation (not tax deductible)13000
Depreciation administration building 75000
Depreciation delivery vehicles 230000
Insurance premium paid for the year 1 November 2023 to 84000
31 October 2024.
4. Taxation The company provides for deferred tax on all temporary differences according to the statement of financial position approach. There are no exempt or temporary differences except those mentioned in the question. There is certainty beyond any reasonable doubt that the company will have sufficient taxable profit in future against which any deductible temporary differences can be utilised. The deferred tax liability balance was R1750 on 31 December 2022, which you may assume to be correct. . The SA Normal tax rate changed from 28% in 2022 to 27% in 2023. The capital gains tax inclusion rate is 80%. Ignore the implications of Value Added Tax (VAT). The following is an extract of the statement of financial position SA Revenue Service - current tax general ledger account of Ndlovu Jam Ltd for the year ended 31 December 2023:
SA Revenue Service - current tax
31/07/2023 Bank (1st provisional tax payment for 2023, The accountant of Ndlovu Jam Ltd has not y

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