Answers

ACCA Certified Accounting Technician Examination – Paper T9 (LSO) June 2009 Answers
Preparing Taxation Computations (Lesotho) and Marking Scheme

Section A
Marks
1 A 2
(M213,900 x 15%) = M32,085
Taxable amount M32,085/0·65 = M49,362
Tax M49,362 x 35% = M17,277

2 D 2
M2,500 x 12 x 22% – M4,500 = M2,100

3 B 2

4 B 2
M52,300 x 10% = M5,230

5 A 2
M112,500 – 102,899 = M9,601

6 A 2

7 B 2

8 C 2

9 A 2

10 C 2
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Section B Marks

1 Mpolokeng Matolo

(a) Chargeable income for the year ended 31 March 2009

M M
Income from taxi business (M132,400 + M66,300) 198,700 1
Less: Allowable deductions
Repairs and maintenance (Working 1) (14,928)
Petrol (66,879) 1/
2
Salaries (24,000) 1/
2
Rental fee (3,700) 1/
2
Food (6,000) 1/
2
Licences and permits (789) 1/
2
Interest (M50,169 x 7/12) (29,265) 2
Depreciation (M238,900 x 25% x 7/12) (34,840) 21/2
––––––––
(180,401)
––––––––
Chargeable income 18,299
Working 1 – Repairs and maintenance
Repairs and maintenance 48,726 1
Less: Personal expenses (12,342) 1
Repairs and maintenance owing (21,456) 1
––––––– –––
14,928 11
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(b) Minimum chargeable income for the year ended 31 March 2009
School fees (28,000 + 78,000) x 100% 106,000 21/2
Car (450,000 x 25%) 112,500 2
Principal home – Katlehong (668,980 x 5%) 33,449 11/2
Secondary home – Johannesburg (1,440,300 x 5%) 72,015 11/2
Electricity (3,500 + 500) x 12 x 100% 48,000 21/2
Travel (26,000 + 14,300 + 9,000) x 6 x 100% 295,800 2
–––––––– –––
Minimum chargeable income 667,764 12
–––––––– –––
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2 Molemela Consortium Plc

Calculation of depreciation allowance

Group 1 Group 2 Group 3 Total
2005/06
Opening balance 142,457 967,999 600 11/2
1/ previous acquisitions – – – 1/
2 2
1/ current acquisition – 1,305,400 – 1
2
Less: Disposals – (279,824) – 1
–––––––– –––––––––– ––––
142,457 1,993,575 600
Less: depreciation allowance (35,614) (398,715) (60) 434,389 3
–––––––– –––––––––– ––––
Closing balance 106,843 1,594,860 540
2006/07
Opening balance 106,843 1,594,860 540
1/ previous acquisitions – 1,305,400 – 1
2
1/ current acquisitions 111,325 19,450 – 2
2
–––––––– –––––––––– ––––
218,168 2,919,710 540
Less: depreciation allowance (54,542) (583,942) (54) 638,538 3
–––––––– –––––––––– ––––
Closing balance 163,626 2,335,768
Allowable loss 486 1

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 Marks
Group 1 Group 2 Group 3 Total
2007/08
Opening balance 163,626 2,335,768
1/ previous acquisitions 111,325 19,450 1
2
1/ current acquisitions – 555,600 1
2
Less: disposals (300,000) (712,200) 2
–––––––– ––––––––––
2,198,618
Chargeable gain 25,049 1
Less: depreciation allowance – (439,724) 439,724 1
–––––––– ––––––––––
Closing balance – 1,758,894
2008/09
Opening balance – 1,758,894
1/ previous acquisitions – 555,600 1
2
1/ current acquisitions – –
2
–––––––– ––––––––––
– 2,314,494
Less: depreciation allowance – (462,899) 462,899 1
–––––––– –––––––––– –––
Closing balance – 1,851,595 22

3 Palm Plc

(a) Tax payable for the year ended 31 December 2008

Lesotho Property Foreign

source income source
Sales 877,690 595,000 2
Interest 110,880 1
Purchases (680,902) 1
Less: closing stock 80,000 1
––––––––
Cost of sales (600,902) 1/
2
––––––––
Gross profit 276,788
Less: Deductible operating expenses (150,000) 1
–––––––– –––––––– ––––––––
Chargeable income 126,788 110,880 595,000
Chargeable income 832,668
Tax at 25% 208,167 1
Less:
Withholding tax (11,088) 1
Instalments (16,600) 1
Advance corporation tax (12,968) 1
––––––––
Tax payable 167,511 1/
2

Due date for final payment 31 March 2009 1

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(b) – Advance corporation tax (ACT) should be offset against future tax instalments and if the amount is not
fully utilised it should be carried forward for offset against the final tax liability. 2
– Withholding should be offset against the final tax liability. 2
– Instalments paid should be used to pay the advance corporation tax (ACT) liability, any amount not
utilised should be offset against the final tax liability. 2
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 Marks
4 (a) Limpho Rajoko – VAT return for December 2008

Taxable sales Amount VAT

Sales – 14% (158,650 + 13,366)/1·14 150,891 21,124 3
Sales – 5% (4,500/1·05) 4,286 214 2
–––––––– –––––––
Total output VAT 155,177 21,338
Less Input VAT
Imports (Swaziland Cash and Carry) 98,358 13,770 1
Econet Lesotho – 5% 3,000 150 1
–––––––– –––––––
Total input VAT 13,920
VAT payable 7,418 1
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(b) Employment Business

Income Income
Resident liable to tax on worldwide income, liable to tax on worldwide income
but foreign service is exempt 21/2
Expatriate liable to tax on worldwide income liable to tax on worldwide income 2
Diplomatic Exempt from tax liable to tax on Lesotho source income only 2
Resident residing abroad liable to tax on worldwide income liable to tax on worldwide income
but foreign income exempt if
taxed abroad 21/2
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9
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