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Please help Question 1 Toy Story Lid carries on business as a manufacturer of toys from its main branch in the Republic. The company also

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Question 1 Toy Story Lid carries on business as a manufacturer of toys from its main branch in the Republic. The company also operates a depot in Botswana, where sales are made to customers living in Botswana. The Botswanan depot does not operate as an independent branch. Toy Story Lid has been registered as a Category 'A' vendor. All amounts include VAT where appropriate. The following information is provided: Receipts: February March R R 1. Cash sales made by the Republic branch to South African customers 199 300 182 200 Cash sales made by the Botswanan depot to Botswanan customers (these | 45 400 56 800 goods were forwarded to the depot on 10 January and were all sold by the end of March) 2 Insurance payment received on an insurance claim for trading stock stolen in | 176 500 the Republic 3. Interest received on a loan to a subsidiary company in the Republic 19 180 4 Cash received for the sale of an old machine to Mr Bell, the majority | 16 900 shareholder. Mr Bell is not a registered vendor. The machine originally cost R20 000 and had a book value of R5 000 on the date of sale. The open market value on the date of sale was R23 480. Expenses: February March R R 1. Wages and salaries 69 340 62 500 2 Property rates on the business property 7 210 7 210 3. Electricity and water 6 583 6 355 1 Telephone 6 412 6 070 5. Raw materials purchased from other vendors 142 300 96 700 Cost of entertaining important customers at various restaurants in Durban 6 868 6 412 7. Purchase of a new single-cab bakkie for use as a delivery vehicle 176 500 Cost 14 050 Finance charges paid 8 Cash cost of a new motor car purchased for general use within the business 96 700 9. Petrol for delivery vehicles and the new motor car 6 412 6 526 10 Maintenance of delivery vehicle and the new motor car 6 298 6 412 11 Toy Story purchased three water bottles for the cold water-dispensing | 11500 machine in the staff canteen. These bottles cost R2 000 each and were paid for in March Required: Calculate the VAT payable by or refundable to Toy Story Ltd in respect of its two-month tax period ended 31 March 2021. (Show detailed workings of how you would deal with each item.) NB: round off your calculations to the nearest Rand

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