Class Exercise (9, 10 and 11 March 2022)
Smoothy (Pty) Ltd is a manufacturer of dairy products in Windhoek, with a processing plant based in Karibib
and various selling outlets across Namibia. It is registered as a Value-Added Tax (VAT) vendor. Details of
Smoothy (Pty) Ltd.’s receipts and accruals and expenditure for the two-month tax period ended 31 March 2022
are as follow: (Unless otherwise stated, all the amounts below are inclusive of VAT, if applicable.) The VAT rate
1. Smoothy (Pty) Ltd purchased a new delivery van for N$570 000.
2. Smoothy (Pty) Ltd purchased a new motor car for N$228 000.
3. Smoothy (Pty) Ltd sold 5 000 crates of yoghurt products to Checkers, a resident retail customer. The
selling price of a crate of yoghurt products is N$180 exclusive of VAT.
4. The company also sold and exported 1 000 crates of dairy products to Zambia Beverages Ltd who is
based in Livingstone, Zambia. The selling price of a crate of dairy products is N$280 exclusive of VAT.
5. On 1 February 2022 Smoothy (Pty) Ltd paid N$17 100 for the lease of a one-bedroomed flat in
Windhoek. Smoothy (Pty) Ltd also paid another rental payment on 1 March 2021, it paid N$17 100 via
an EFT. The use of the flat is utilised by sales representatives and managers when they need to visit
6. On 1 February 2022 Smoothy (Pty) Ltd paid N$91 200 for the lease of a shop in a shopping centre.
Another lease payment amount of N$91 200 were made on 1 March 2022. The lease payments relate
to a shop in a shopping centre in Windhoek. This shop is used by it to retail its soft drinks in the public.
7. On 28 February 2022 it paid a local service station N$342 000 for petrol and diesel purchased during
the month. The petrol and diesel are utilised by its delivery vehicles.
8. On 1 March 2022, the company paid the insurance premium of N$57 654 in respect of machines used
in the production process.
9. On 28 February 2022, its bank account was credited with N$14 000 being interest earned on its
favourable balance for the month of February 2022.
10. During February 2022, the company incurred accommodation and meals of N$7 985 by Vladimera, the
marketing manager, on an out-of-town business trip whereby she spent at least 3 nights away from
home in a hotel in Oshakati, she then had to attend an overseas symposium and two overseas air tickets
were bought for this trip and costing N$18 467.
11. Telvi-shop was one of its local customers. Telvi-shop owes Smoothy (Pty) Ltd an amount of N$11 400.
Telvi-shop paid only N$3 420 of the outstanding amount. For six months Smoothy (Pty) Ltd
unsuccessfully attempted to recover the balance owing to it by Telvi-shop. On 31 March 2022 it wrote
off the balance owing to Smoothy (Pty) Ltd by Telvi-shop as irrecoverable debt.
1. Provide the name of the current commissioner of NamRA.
2. Provide the date on which NamRA were launched in Namibia.
3. Calculate Smoothy (Pty) Ltd’s VAT payable or refundable showing the two separate columns for input
VAT and output VAT for the tax period 1 February 2022 to 31 March 2022. Where no VAT is applicable
provide reasons. Round off amounts to nearest Namibian Dollar.
4. Show the journal entries for all the transactions above. Narrations are required.
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