Answered step by step
Verified Expert Solution
Question
1 Approved Answer
QUESTION TWO [ 4 5 ] Kyle Naidoo, a resident of the Republic, sells and repairs household appliances from a shop he leases in a
QUESTION TWO
Kyle Naidoo, a resident of the Republic, sells and repairs household appliances from a shop he leases in a local shopping centre. Kyle operates a sole proprietor and is registered for VAT on the invoice basis. He makes solely taxable supplies.
An analysis of Kyle's income and expenditure for the twomonth tax period ending February is set out below. Unless otherwise stated, all amounts are inclusive of VAT, where applicable. All transactions are with registered VAT vendors, unless otherwise stated.
Notes
The indemnity award of R was received from Kyle's insurer for trading stockthat was stolen from his shop in January when he had a breakin
Bad debts of R were written off, comprising of: R owing by a longstanding customer on a credit sale. This customerhas since emigrated and Kyle has been unable to trace him.
R was lent to an employee, who left town without repaying the loan.
Depreciation for the twomonth tax period is charged for the following assets:
Insurance premiums are made up as follows:
Purchases comprise as follows:
Rentals are for the following:
tableRShop premises,Cash register,tableCoffee machine located in the shop to make Kyle's employeesand himself coffeeTotal rentals,
Required: Calculate the net VAT due to or refundable from SARS for the JanuaryFebruary tax period. Use a VAT rate of Round off to the nearest Rand and show ALL workings. Where there is a nil VAT effect, state a brief reason why. marks
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started