1 calculate Taxable Income:

2.Tax Payable/Refund:

P & L Statement

Income		$	$
Gross sales		1,300,000
Less COGS
Purchases	500,000
Plus opening stock	40,000
	540,000
Less closing stock	50,000
	490,000	490,000
Gross Profit		810,000	810,000
Fully franked dividend			70,000
Interest received			120,000
Expenses			1,000,000
Wages		300,000
PAYG Instalments		50,000
Accounting depreciation		110,000
General expenses		78,000
Bad debts		4,000
Doubtful debts		17,000
Legal expense (note 2)		40,000
Rent paid		90,000	689,000
Net Profit			311,000

Notes to accounts

(1) Decline in value for taxation purposes is $130,000.

(2) The legal expense of $40,000 was for an unsuccessful takeover of a competitor.

BALANCE SHEET AT 30 JUNE 2015

	$	$
Current Assets		536,000
Cash at bank	451,000
Account receivable	35,000
Closing stock	50,000
Non Current Assets		189,000
Machinery	39,000
Land	150,000
Total Assets		725,000
Current Liabilities		45,000
Account payable	40,000
GST Payable	5,000
Non current liabilities		130,000
Mortgage	130,000
Less Total liabilities		175,000
Net Assets		550,000
Equity		550,000
Share capital	100,000
Retained earnings	450,000

Taxation rate for Australia. Thanks