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Tutorial 16.3 Solution

The document provides the general ledger and income statement for Footloose Enterprises (Pty) Ltd for the years ending August 31, 2024, and 2025. It details provisional tax payments, over provisions, and the resulting profit before and after tax. The income statement shows a profit before tax of R650 for 2025, compared to R85,000 in 2024, with a taxation adjustment reflecting an over provision of R1,440.

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2 views2 pages

Tutorial 16.3 Solution

The document provides the general ledger and income statement for Footloose Enterprises (Pty) Ltd for the years ending August 31, 2024, and 2025. It details provisional tax payments, over provisions, and the resulting profit before and after tax. The income statement shows a profit before tax of R650 for 2025, compared to R85,000 in 2024, with a taxation adjustment reflecting an over provision of R1,440.

Uploaded by

211048968
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Tutorial 16.

Part 1

General Ledger of Footloose Enterprises (Pty) Ltd

Dr SARS Cr

2024 1st provisional payment R13 500 Opening balance R3240


2nd provisional payment R9 000 Tax expense (82300*30%) R24 690
3rd provisional payment R3 240
Balance c/d R2 190
R27 930 R27 930
Balance b/d R 2 190

2025 3rd provisional payment R2 190 Opening balance R2 190


1st provisional payment R13 500 Bank refund R 1 670
2nd provisional payment R8 000 Tax expense R0
Over provision R 1 440 Balance c/d R21 500
Interest R230
R25 360 R25 360
Balance b/d R21 500

Calculations:

2024 Balance

R24 690 – (R13 500 + R9000) = R2 190

Third provisional payment R27 930 – R2 190 – R13 500 – R9 000 = R 3 240

Over provision

Estimate R 82 300 * 30% = R24 690

Actual R77 500 * 30% = R 23 250

Over provision R24 690 – R23 250 = R 1440

R1 670 – R1 440 = R230 Interest

2025 Balance

R 0 – (13500 + R8000) = -R21 500


Third provisional payment R25 360 – R230 – R1 440 – R8 000 – R13 500 = R2 190
Part 2

Footloose Enterprises (Pty) Ltd

Income Statement for the year ended 31 August 2025

2025 2024
R R
Profit before tax 650 85 000
Taxation 1440 (R24 690)
Profit after tax 2090 R60 310

Footloose Enterprises (Pty) Ltd

Notes to the Income Statement for the year ended 31 August 2025

2025 2024
R R
Taxation
Current year R0 R 24 690
Under/over provision (R 1440) R0
(R1440) R 24 690

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