. Arthur Seth has a rice farmer for several years making up his accounts to December 31^st each year. On 1^st July, Bernice Aku joined the business

Details of the partnership were as follows:

				Seth	Bernice
Capital introduced				GHC 5,000	GHC 2,500
Profit sharing ratio				2	: 1
Cost of living allowance				GHC200 per month	GHC200 per month
Risk allowance				GHC300 per month	GHC300 per month
Interest on Capital				GHC500 per month	GHC250 per month
Management Allowance				GHC300 per month	GHC100 per month

These allowances were charged in the accounts in arriving at the following profits:

Year to December 31, 2016 GHC30,000

Year to December 31, 2017 GHC 45,000

Residual values of assets in use in the business as at 1^st January, 2016 were as follows:

Tractors GHC 5,600

Farm House GHC 12,000

A combined harvester was purchased in March, 2016 at a cost of GHC 80,000.

Required:

Determine the chargeable incomes of the partners for the relevant years. (10 MARKS)

B. ACCOUNTING COMPANY LTD, a self-assessed tax payer with the LTO of GRA estimated its chargeable income for the assessment year 2013 to be GHC120,000,000.

The company commissioned a new plant in April 2013 and realized that its production capacity has improved significantly and hence revised its estimated chargeable income to GHC200,000,000 in May 2013.

In November, the same year after the third quarter interim accounts, the Directors were advised by the Auditors to adjust their chargeable income to avoid an imposition of a penalty by the LTO. This was adhered to and subsequently revised estimate further to GHC300,000,000.

The company submitted its 2013 annual returns on due date of 30th April 2014 and posted actual chargeable income of GHC520,000,000.

Required:

1. Compute the installment payment for the four (4) quarters in the assessment year 2013.
2. Compute any penalty payable by the company.
3. Determine the outstanding tax payable by the company assuming all the installment payments were made on due date.

Please note the following:

1. The companys basis period is 1st January to 31st December.

The corporate tax rate is 25%.