Kaleb was a director of DS Farm Contractors Pty Ltd. The business needed a new piece of equipment. His suppliers were demanding payment before supply; arrears notices were piling up relating to business loans; and his tax liabilities were currently over 4 months late. Employee superannuation was also 6 months overdue.Kaleb found an equipment finance company that wanted to break into his area and provided the company with some quickly prepared and unrealistic cash flow forecasts and financial reports. The finance company agreed to provide finance for $165,000 for the new equipment.Some 2 months later, the tax office filed a Statutory Demand, and was successful in winding up Kalebs company.Which section relates to Kaleb's finance for the new equipment?

Lee, a sole trader, provided the following information from his books of account on 30 April 2019. $ Bank overdraft 11 240 Capital 50 000 Carriage inwards 670 Drawings 24 060 Inventory at 1 May 2018 12 500 3% Loan 20 000 Loan interest 50 Motor vehicles Cost Provision for depreciation 32 000 8 000 Office equipment Cost Provision for depreciation 4 600 2 400 Other operating costs 61 990 Provision for doubtful debts at 1 May 2018 2 850 Purchases 97 370 Revenue 165 000 Trade receivables 47 890 Trade payables 21 640 The following information is also available. 1 An invoice from a supplier dated 28 April 2019 for goods costing $940 had not been recorded in the books of account. These goods were unsold at the year-end. 2 Inventory was counted at 30 April 2019 and was valued at cost, $21 340. 3 Revenue included goods sold in April 2019 to a credit customer for $3200 on a sale or return basis. These goods were invoiced with a mark-up of 60% and were returned by customer on 5 May 2019. 4 During the year, Lee took goods with a cost of $250 for his own use. 5 The 3% loan was taken out on 1 August 2018 and is repayable in 5 annual instalments starting on 1 August 2019. 6 A debt of $690 was considered to be irrecoverable and was to be written off. 7 The provision for doubtful debts was to be maintained at 5% of the trade receivables. 8 A computer for office use bought on credit on 1 July 2018 costing $1200 had been debited to the purchases account. 9 Depreciation is to be provided as follows: Motor vehicles 25% per annum using the reducing balance method Office equipment 10% per annum using the straight-line method A full year’s depreciation is charged in the year of purchase.

The following information and figures are related to the business of KSK Enterprise. RM Opening stock of raw materials 2500 Purchases of raw materials 61000 Closing stock of raw materials 3500 Factory wages 38000 Insurance of factory building 800 Depreciation of manufacturing equipment 2500 Electricity of factory 900 Rent of factory 1000 Required: Compute the following: a. Cost of raw materials used during the year

UPay Pty Ltd is a start-up company and its principal Activity is to provide technology-driven payment solutions for consumers and merchants through its After pay and Pay Now services and businesses.In the first year of operation UPay Pty Ltd generated $156,000 for services provided, 24,000 of which was on account and still outstanding by the year-end.The remaining was received in cash from customers. The company incurred operating expenses of $90000. Of these expenses, $81000 was paid in cash, a balance was still on account at year-end.In addition, UPay Pty Ltd prepaid $13000 for insurance coverage, which would not commence until the second year of operations.The following is the first year’s profit under the accrual basis of accounting

Class Example 1BalanceMe Ltd is a company that provides trucking and other related services to thecommunity in Kagiso, South of Johannesburg. BalanceMe has a 31 December yearend.BalanceMe has the following property, plant and equipment on 31 December 2020(excluding any costs to dismantle).Cost Carrying Amount Tax BaseLand 50 000 75 000 50 000Machinery 40 000 20 000 16 000The machinery is depreciated on a straight line basis at 25% per annum. Themachinery qualifies for a section 12C deduction at a rate 40/20/20/20The entity classifies the land as investment property, measured at fair value. The fairvalue of the land at 31 December 2021 amounted R80 000.The entity is required to dismantle the machine at the end of the useful life. Theestimated costs of dismantling were estimated to be R100 000 at the end of thatuseful life. Assume a pre-tax rate of 10% is applicable and that the effect ofdiscounting is material. SARS will only allow a deduction for the dismantling costsonce they are paidThe accounting profit before tax for BalanceMe on 31 December 2021 was R15 000.BalanceMe received local dividends of R3 500, correctly included in profit before taxand also paid a dividend of R5 000.The income tax rate 27% remained unchanged for all financial years.Required:a) Calculate the deferred tax balance, using the asset and liability method, as at 31December 2020b) Calculate the current and deferred income tax expense for the year ending 31December 2021c) Calculate the deferred tax balance, using the asset and liability method, as it 31December 2021d) How would the above be different if the land was classified as property, plant andequipment measured in terms of the revaluation model?

Question 1The following information and figures are related to the business of KSK Enterprise.RMOpening stock of raw materials 2500Purchases of raw materials 61000Closing stock of raw materials 3500Factory wages 38000Insurance of factory building 800Depreciation of manufacturingequipment2500Electricity of factory 900Rent of factory 1000Required:Compute the following:a. Cost of raw materials used during the yearb. Prime costc. Factory overheadd. Cost of production