Question 1 (25 Marks)

	Current year	Previous year
Debtors’ balances at 28/29 February – sales (excluding finance
charges	320 000	360 000
Doubtful debts (included in the above amounts)
debtors (excluding finance charges)	80 000	40 000
finance charges accrued in terms of section24J	64 000	32 000
Gross profit percentage	40%	40%

You are required to calculate Marko Polo Ltd.’s taxable income for the previous and current years of assessment.

Question 2 (5 Marks)

Modise Ltd had a gross income of R200 000 and expenses of R300 000 for the year ended 28 February 2018. For the 2019 year of assessment the company had gross income of R240 000 and expenses of R200 000 and, in the 2012 year, gross income of R380 000 and expenses of R240 000.

You are required to calculate the company’s taxable income or assessed loss for the 2018, 2019 and 2020 years of assessment.

Question 1 (25 Marks)

	Current year	Previous year
Debtors’ balances at 28/29 February – sales (excluding finance
charges	320 000	360 000
Doubtful debts (included in the above amounts)
debtors (excluding finance charges)	80 000	40 000
finance charges accrued in terms of section24J	64 000	32 000
Gross profit percentage	40%	40%

You are required to calculate Marko Polo Ltd.’s taxable income for the previous and current years of assessment.

Question 2 (5 Marks)

Modise Ltd had a gross income of R200 000 and expenses of R300 000 for the year ended 28 February 2018. For the 2019 year of assessment the company had gross income of R240 000 and expenses of R200 000 and, in the 2012 year, gross income of R380 000 and expenses of R240 000.

You are required to calculate the company’s taxable income or assessed loss for the 2018, 2019 and 2020 years of assessment.