Answer the following questions clearly showing your workings

Thi) The following Assets were purchases on 1" April, 2018. Ksh '000' Processing 400 machinery Office Curtains 150 Fax Machine 100 The processing machinery was acquired on hire purchase terms. The cash price was Shs.250,000 Required Computer the capital allowances due to H Ltd for each of the Two years ended 31/12/18 (20 Marks) QUESTION 2 (a) Given below is the summary of the sales day book and purchases day book of Z Itd for the year of income ended 30" December 2017 Purchases day book Kish.'000' Shoes 10, 000 Clothes 50,000 Advertising 12,000 Materials 24,000 Goods 130,000 226 000 Sales day book Clothes 100,000 Goods 230,000 shoes 15,000 345,000 The above items each included VAT at the rate of 18% p.a Required: Prepare the VAT account to record the above items showing the balance due (6 marks) State when the VAT is payable (2 marks) State the penalties to be levied if VAT is not remitted on the due dates. (2 marks)TAXATION ASSIGUHEUT (DUE ON 17/10/2020) QUESTION 1 H Led was established in the your 2018 to manufacture Soap for the local market. Before commencement of operation on 1" July 2018, the Company spent a total of Shs.9,760,000 to construct a factory. This cost is analyzed below. Shs '000' Cost of land 1000 landscaping 200 Architects fees 320 Sewerage system 240 Actual building costs (including Showroom at Shs.900,000) 8000 Total cost 9760 Additional Information The following assets were constructed or purchased utilized with effect from 1" July 2018 Shs '000' Power transformer 800 Processing machinery 1900 Bridge (Connecting factory and main Road) 600 Water pump 150 Fork lift (Mobile) 1200 Two saloon cars (cost Sha. 1.8 Hillion each) 3600 Computers 200 Furniture & fixtures 120 Pick-up 1500 Tractor 1400 Scanners 80 One of the Saloon cars was written off following an accident on 1" January, 2018. The insurance Company paid Shs900,000 as compensation to H Ltd