Toy Story Ltd carries on business as a manufacturer of toys from its main branch in...

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Toy Story Ltd carries on business as a manufacturer of toys from its main branch in the Republic. The company also operates a depot in Botswana, where sales are made to customers living in Botswana. The Botswanian depot does not operate as an independent branch. Toy Story Ltd has been registered as a Category 'A' vendor. All amounts include VAT where appropriate. The following information is provided: Receipts: 1. 2 3. 4. 1. 2 3. 4. Cash sales made by the Republic branch to South African customers 5. 6. Cash sales made by the Botswanan depot to Botswanian customers (these goods were forwarded to the depot on 10 January and were all sold by the end of March) Expenses: Insurance payment received on an insurance claim for trading stock stolen in the Republic Interest received on a loan to a subsidiary company in the Republic Cash received for the sale of an old machine to Mr Bell, the majority shareholder. Mr Bell is not a registered vendor. The machine originally cost R20 000 and had a book value of R5 000 on the date of sale. The open market value on the date of sale was R23 480. Wages and salaries Property rates on the business property Electricity and water Telephone Raw materials purchased from other vendors Cost of entertaining important customers at various restaurants in Durban February R 69 340 7 210 6 583 6412 142 300 6 868 199 300 45 400 February R 176 500 19 180 16 900 March R March R 182 200 56 800 62 500 7210 6.355 6 070 96 700 6.412 7. 8. di 10. 11. Purchase of a new single-cab bakkie for use as a delivery vehicle Cost Finance charges paid Cash cost of a new motor car purchased for general use within the business Petrol for delivery vehicles and the new motor car Maintenance of delivery vehicle and the new motor car Toy Story purchased three water bottles for the cold water dispensing machine in the staff canteen. These bottles cost R2 000 each and were paid for in March. 176 500 14 050 96 700 6412 6 298 11.500 6 526 6412 Required: Calculate the VAT payable by or refundable to Toy Story Ltd in respect of its two-month tax period ended 31 March 2022. (Show detailed workings of how you would deal with each item.) NB: round off your calculations to the nearest Rand. Toy Story Ltd carries on business as a manufacturer of toys from its main branch in the Republic. The company also operates a depot in Botswana, where sales are made to customers living in Botswana. The Botswanian depot does not operate as an independent branch. Toy Story Ltd has been registered as a Category 'A' vendor. All amounts include VAT where appropriate. The following information is provided: Receipts: 1. 2 3. 4. 1. 2 3. 4. Cash sales made by the Republic branch to South African customers 5. 6. Cash sales made by the Botswanan depot to Botswanian customers (these goods were forwarded to the depot on 10 January and were all sold by the end of March) Expenses: Insurance payment received on an insurance claim for trading stock stolen in the Republic Interest received on a loan to a subsidiary company in the Republic Cash received for the sale of an old machine to Mr Bell, the majority shareholder. Mr Bell is not a registered vendor. The machine originally cost R20 000 and had a book value of R5 000 on the date of sale. The open market value on the date of sale was R23 480. Wages and salaries Property rates on the business property Electricity and water Telephone Raw materials purchased from other vendors Cost of entertaining important customers at various restaurants in Durban February R 69 340 7 210 6 583 6412 142 300 6 868 199 300 45 400 February R 176 500 19 180 16 900 March R March R 182 200 56 800 62 500 7210 6.355 6 070 96 700 6.412 7. 8. di 10. 11. Purchase of a new single-cab bakkie for use as a delivery vehicle Cost Finance charges paid Cash cost of a new motor car purchased for general use within the business Petrol for delivery vehicles and the new motor car Maintenance of delivery vehicle and the new motor car Toy Story purchased three water bottles for the cold water dispensing machine in the staff canteen. These bottles cost R2 000 each and were paid for in March. 176 500 14 050 96 700 6412 6 298 11.500 6 526 6412 Required: Calculate the VAT payable by or refundable to Toy Story Ltd in respect of its two-month tax period ended 31 March 2022. (Show detailed workings of how you would deal with each item.) NB: round off your calculations to the nearest Rand.

Answer rating: 100% (QA)

Here are the workings to calculate the VAT payablerefundable by Toy Story Ltd for the 2month tax per... View the full answer