Question: Using the provided insert answer the following questions. Ignore VAT Pools for Pleasure (Pty) Ltd has a year-end of 30 September. On 1 June 2011,

Using the provided insert answer the following questions. Ignore VAT Pools for Pleasure (Pty) Ltd has a year-end of 30 September. On 1 June 2011, the business purchased a digging machine for R2 300 000.

It was reliably estimated that the machine had a residual value of R540 000 and is expected to be used evenly over a period of 5 years. The digging machine was ready for use on 30 June 2011 after safety and licensing costs totalling R18 600 had been incurred. On 1 March 2013, Pools for Pleasure (Pty) Ltd sold the digging machine for R1 700 000 cash.

1 Calculate the depreciable amount of the digging machine on 30 September 2011. Calculate the opening balance on the accumulated depreciation: PPE: Machinery general ledger account on 1 October 2012.

2 Prepare the asset disposal account as it would appear in the general ledger of Pools for Pleasure (Pty) Ltd for the year ended 30 September 2013.

3 Discuss any THREE types of taxes and their implications to businesses.

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