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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 value-added tax on the invoice
basis. An analysis of the companys 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 R51750 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 R13225 written off by Rhino Cell & Repairs, comprising the following:
- R10350 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.
- R2875 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 R276000(R240000
plus value-added tax of R36000)
8000
A computer that was purchased on 1 July 2022 for R14375(R12500 plus value-added tax of R1
875)695
A motor car that was purchased on 1 August 2022 for R632500(R550000 plus value-added tax
of R82500). 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 R3450 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 R160245 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 R13294 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 R5800 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 value-added tax due to, or from, SARS for Rhino Cell & Repairs
two-month tax period that ended on 31 August 2022?

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