Rhino Cell & Repairs owned by Mr Mark Hilton a resident of the Republic, sells and repairs watches from a

shop he leases in a local shopping centre. The company and is registered for value$-$added tax on the invoice

basis. An analysis of the company$$s receipts and accruals and expenditure for his two$-$month tax period

ending $31$ August $2022$ 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 R

Sales of watches $207000$

Repairs of watches $29900$

Interest $5175$

Indemnity award $($note $1)51750$

Expenditure

Bad debts $($note $2)13225$

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 Rhino Cell & Repairs from the insurer for two expensive

watches that were stolen from his shop in June $2022$

$2.$ Bad debts of R$13225$ written off by Rhino Cell & Repairs, 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 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 by the company:

Manufacturing equipment that was purchased in a previous tax period for R$276000($R$240000$

plus value$-$added tax of R$36000)$

$8000$

A computer that was purchased on $1$ July $2022$ for R$14375($R$12500$ plus value$-$added tax of R$1$

$875)695$

A motor car that was purchased on $1$ August $2022$ for R$632500($R$550000$ plus value$-$added tax

of R$82500).$ The motor car is solely used by Mr Mark Hilton. $($He maintains accurate records of

his travelling and can prove that his business travelling is $40\%$ of his total travelling.$)10450$

$19145$

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

Manufacturing equipment $460$

Office computer $230$

Motor car $1035$

Trading stock $1725$

$3450$

$5.$ The purchases of R$160245$ was 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 $17250$

$160425$

Rhino Cell & Repairs purchases second$-$hand watches from both vendors $($for example, auctioneers$)$ and

from non$-$vendors $($for example, private individuals and deceased estates$).$ Mr Mark Hilton displays and sells

second$-$hand watches in his shop

$6.$ Rhino Cell & Repairs 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 Rhino Cell & Repairs 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 Rhino Cell & Repairs

two$-$month tax period that ended on $31$ August $2022?$