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ABC limited offers employees a profit sharing scheme where employees are entitled to a 10% of the net profit after tax and after charging the

ABC limited offers employees a profit sharing scheme where employees are entitled to a 10% of the net profit after tax and after charging the bonus. The bonus is paid in cash in the month following the end of the year. The company reported a profit after tax of sh 1,120,000 in 2011 and 2,240,000 in 2010. Required; Compute the bonus due in each period Prepare the bonus payable account.

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