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Rhino Cell & Repairs owned by Mr Mark Hilton a resident of the Republic, sells and repairs watches from a shop he leases in a
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 valueadded tax on the invoice
basis. An analysis of the companys receipts and accruals and expenditure for his twomonth tax period
ending August is set out below. Unless otherwise stated, all amounts are inclusive of valueadded
tax when applicable. He makes solely taxable supplies
Receipts and accruals R
Sales of watches
Repairs of watches
Interest
Indemnity award note
Expenditure
Bad debts note
Bank charges
Depreciation note
Insurance premiums note
Fuel
Printing and stationery
Purchases note
Salaries
Rentals note
Additional information:
The indemnity award of R was received by Rhino Cell & Repairs from the insurer for two expensive
watches that were stolen from his shop in June
Bad debts of R written off by Rhino Cell & Repairs, comprising the following:
R owing by one of his longstanding customers, from a credit sale. This customer has since
emigrated and he has been unable to trace her.
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 owned by the company:
Manufacturing equipment that was purchased in a previous tax period for RR
plus valueadded tax of R
A computer that was purchased on July for RR plus valueadded tax of R
A motor car that was purchased on August for RR plus valueadded tax
of R 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 of his total travelling.
The insurance premiums of R were incurred for the following assets that belong to the company:
Manufacturing equipment
Office computer
Motor car
Trading stock
The purchases of R was made up as follows:
Purchases of raw materials from vendors
Secondhand watches purchased and paid for from nonvendors
Secondhand watches purchased from vendors
Rhino Cell & Repairs purchases secondhand watches from both vendors for example, auctioneers and
from nonvendors for example, private individuals and deceased estates Mr Mark Hilton displays and sells
secondhand watches in his shop
Rhino Cell & Repairs rentals of R are for the following items:
Shop premises
Cash register
Tea urn located in the shop for his employees and himself to make tea
Two overseas air tickets costing R purchased by Rhino Cell & Repairs were given to an employee
and his wife as part of the employees salary package.
YOU ARE REQUIRED TO determine the valueadded tax due to or from, SARS for Rhino Cell & Repairs
twomonth tax period that ended on August
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