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Below is the income statement of Ashanti Feed Manufacturing Company Limited, located in Akropong in the Ashanti Region of Ghana. The statement covers the year

Below is the income statement of Ashanti Feed Manufacturing Company Limited, located in

Akropong in the Ashanti Region of Ghana. The statement covers the year ended 31/12/2019.

GH000 GH 000 Gross Profit 720,750

Rent Income 156, 250

Other Income 25,000

902,000

Less: Management Salaries 43,750

Staff Salaries 71,250

Hire of Equipment 18,125

Depreciation 7,500

Casual Labour 10,500

Office Rent 9,000

Vehicle Repairs 19,500

Business Promotions 5,250

Donations 11,375

Repairs of Factory Premises 28,500

Office Expenses 22,500

Bad Debts 73,750

Advertisements 1,500 322,500

Net Profit 579,500

Notes to the Accounts:

1. Other income includes profit on disposal of fixtures and fittings amounting to GH15,000,000.

2. Casual Labour is made up of Factory Hands and Wages of employees in Directors Private

Property amounting to GH6,250,000 and GH4,250,000 respectively.

3. Vehicle Repairs includes cost of new engine of GH4,500,000, fuel & lubricants of

GH8,750,000 and Tyres and Tubes of GH6,250,000.

4. Donations consist of the following: Kotoko Football Club GH7,500,000, National Trust Fund

GH125,000 and Bereaved members of staff GH3,750,000 as part of funeral policy approved

by the board.

5. Business Promotions:

- Wedding reception for Directors wedding day GH4,500,000

- Cost of entertaining business partners GH1,750,000

6. Repairs to Factory premises: GH

- Cost of New tiles for floor 16, 000,000

- New gates for factory 10,000,000 Repair of cracks in the wall 2,500,000

7. Office Expenses includes New personal computer and stationary amounting to

GH18,750,000 and GH3,750,000 respectively.

8. Office rent paid of GH 9,000,000 represents two years rent for the period ending 31st

December 2019.

9. The written value of the companys chargeable assets as at 31/12/2018 was as follows:

Building (cost 6,250,000) 5,000,000

Motor Vehicles 22,500,000

Plant and Machinery 7,500,000

Computers 5,000,000

Required:

(a) Determine the Companys Chargeable income for the 2019 year of assessment.

(15 marks)

(b) Calculate the tax liability of the company for 2019 assessment year, if any (5 marks)

QUESTION 2 Bdow is the income statement of Ashanti Food Manufacturing Company Limited located in Akropong in the Ashanti Region of Ghana The statement over the year ended 31/12/2019 Grosso Rent Income Other Income 156,290 2000 Lew: Management Sales Surf Stars Hire of Equipment 71.250 10.500 Office Rent Vehicle Repairs 11,375 Repairs of Fawy Premises Office Expenses 22.500 Advertisements Nel Profil 529,500 Notes to the A Other income includes politon disposal of fixtures and finings amounting to GHS000.000 2. Casual Labour is made up of Factory Hands and Wages of employees in Director's Private Property anting to G2000 G64.250.000 respectively 3. Vehicle Repairs includes cost of new engine of 4.500,000. fuel & lubricants of Gle, 750.000 and Tyres and Tubes of GI 250.000 4. Donations cool the following the Club 7.500,000, National Trust Fund GH 125.000 and Bredenen of G750,000 as part of final policy approved by the board 5. Business home Wedding receptie for De' welding day G.500.000 Cost of entertaining business partners GHCl,750,000 6. Repairs towym GIC Cost of New tiles for 16.000.000 New gates for factory 10.000.000 GY 7. Oficinas Nepal computer and staticary conting to R. Office paid of GHC9.000.000 spect two years for the period ending 3 9. The written value of the company's chargeable 31/12/2018 was as follows: Building cost 6.250,000) 5.000.000 Motor Vehicles 22.500.000 Plan and Mastery 7.500.000 Computers Required: Determine the Company's Chargeable income for the 2019 year of coment (1 mark) Calculate the tax liability of the company fix 2019 ment year, if my marks Total markal QUESTION 2 Below is the income statement of Ashanti Food Manufacturing Company Limited, located in Akropong in the Ashanti Region of Ghana. The statement covers the year ended 31/12/2019. GH000 GH 000 Gross Profit 720,750 Rent Income 156, 250 Other Income 25,000 902.000 Less: Management Salaries 43,750 Staff Salaries 71,250 Hire of Equipment 18,125 Depreciation 7.500 Casual Labour 10,500 Office Rent 9,000 Vehicle Repairs 19.500 Business Promotions 5.250 Donations 11,375 Repairs of Factory Premises 28,500 Office Expenses 22,500 Bad Debts 73,750 Advertisements 1,500 322.500 Net Profit 579,500 Notes to the Accounts: 1. Other income includes profit on disposal of fixtures and fittings amounting to GH15,000,000 2. Casual Labour is made up of Factory Hands and Wages of employees in Director's Private Property amounting to GH6,250,000 and GH4,250,000 respectively. 3. Vehicle Repairs includes cost of new engine of GH4,500,000, fuel & lubricants of GH8,750,000 and Tyres and Tubes of GH6,250,000. 4. Donations consist of the following: Kotoko Football Club GH7,500,000, National Trust Fund GH 125,000 and Bereaved members of staff GH3,750,000 as part of funeral policy approved by the board 5. Business Promotions - Wedding reception for Director's wedding day GH 4,500,000 Cost of entertaining business partners GH1,750,000 6. Repairs to Factory premises: GHC - Cost of New tiles for floor 16,000,000 New gates for factory 10,000,000 3. Vehicle Repairs includes cost of new engine of GH4,500,000, fuel & lubricants of GH8,750,000 and Tyres and Tubes of GH6,250,000 4. Donations consist of the following: Kotoko Football Club GH7,500,000, National Trust Fund GH125,000 and Bereaved members of staffGH3,750,000 as part of funeral policy approved by the board 5. Business Promotions: - Wedding reception for Director's wedding day GH4,500,000 Cost of entertaining business partners GH1.750,000 6. Repairs to Factory premises: GHC Cost of New tiles for floor 16.000.000 - New gates for factory 10,000,000 Repair of cracks in the wall 2.500.000 7. Office Expenses includes New personal computer and stationary amounting to 8.Office rent paid of GHC 9,000,000 represents two years rent for the period ending 31st December 2019 9. The written value of the company's chargeable assets as at 31/12/2018 was as follows: GH Building (cost 6,250,000) 5,000,000 Motor Vehicles 22.500.000 Plant and Machinery 7,500,000 Computers 5,000,000 Required: (a) Determine the Company's Chargeable income for the 2019 year of assessment (15 marks) (b) Calculate the tax liability of the company for 2019 assessment year, if any (5 marks) Total 20 marks! QUESTION 2 Bdow is the income statement of Ashanti Food Manufacturing Company Limited located in Akropong in the Ashanti Region of Ghana The statement over the year ended 31/12/2019 Grosso Rent Income Other Income 156,290 2000 Lew: Management Sales Surf Stars Hire of Equipment 71.250 10.500 Office Rent Vehicle Repairs 11,375 Repairs of Fawy Premises Office Expenses 22.500 Advertisements Nel Profil 529,500 Notes to the A Other income includes politon disposal of fixtures and finings amounting to GHS000.000 2. Casual Labour is made up of Factory Hands and Wages of employees in Director's Private Property anting to G2000 G64.250.000 respectively 3. Vehicle Repairs includes cost of new engine of 4.500,000. fuel & lubricants of Gle, 750.000 and Tyres and Tubes of GI 250.000 4. Donations cool the following the Club 7.500,000, National Trust Fund GH 125.000 and Bredenen of G750,000 as part of final policy approved by the board 5. Business home Wedding receptie for De' welding day G.500.000 Cost of entertaining business partners GHCl,750,000 6. Repairs towym GIC Cost of New tiles for 16.000.000 New gates for factory 10.000.000 GY 7. Oficinas Nepal computer and staticary conting to R. Office paid of GHC9.000.000 spect two years for the period ending 3 9. The written value of the company's chargeable 31/12/2018 was as follows: Building cost 6.250,000) 5.000.000 Motor Vehicles 22.500.000 Plan and Mastery 7.500.000 Computers Required: Determine the Company's Chargeable income for the 2019 year of coment (1 mark) Calculate the tax liability of the company fix 2019 ment year, if my marks Total markal QUESTION 2 Below is the income statement of Ashanti Food Manufacturing Company Limited, located in Akropong in the Ashanti Region of Ghana. The statement covers the year ended 31/12/2019. GH000 GH 000 Gross Profit 720,750 Rent Income 156, 250 Other Income 25,000 902.000 Less: Management Salaries 43,750 Staff Salaries 71,250 Hire of Equipment 18,125 Depreciation 7.500 Casual Labour 10,500 Office Rent 9,000 Vehicle Repairs 19.500 Business Promotions 5.250 Donations 11,375 Repairs of Factory Premises 28,500 Office Expenses 22,500 Bad Debts 73,750 Advertisements 1,500 322.500 Net Profit 579,500 Notes to the Accounts: 1. Other income includes profit on disposal of fixtures and fittings amounting to GH15,000,000 2. Casual Labour is made up of Factory Hands and Wages of employees in Director's Private Property amounting to GH6,250,000 and GH4,250,000 respectively. 3. Vehicle Repairs includes cost of new engine of GH4,500,000, fuel & lubricants of GH8,750,000 and Tyres and Tubes of GH6,250,000. 4. Donations consist of the following: Kotoko Football Club GH7,500,000, National Trust Fund GH 125,000 and Bereaved members of staff GH3,750,000 as part of funeral policy approved by the board 5. Business Promotions - Wedding reception for Director's wedding day GH 4,500,000 Cost of entertaining business partners GH1,750,000 6. Repairs to Factory premises: GHC - Cost of New tiles for floor 16,000,000 New gates for factory 10,000,000 3. Vehicle Repairs includes cost of new engine of GH4,500,000, fuel & lubricants of GH8,750,000 and Tyres and Tubes of GH6,250,000 4. Donations consist of the following: Kotoko Football Club GH7,500,000, National Trust Fund GH125,000 and Bereaved members of staffGH3,750,000 as part of funeral policy approved by the board 5. Business Promotions: - Wedding reception for Director's wedding day GH4,500,000 Cost of entertaining business partners GH1.750,000 6. Repairs to Factory premises: GHC Cost of New tiles for floor 16.000.000 - New gates for factory 10,000,000 Repair of cracks in the wall 2.500.000 7. Office Expenses includes New personal computer and stationary amounting to 8.Office rent paid of GHC 9,000,000 represents two years rent for the period ending 31st December 2019 9. The written value of the company's chargeable assets as at 31/12/2018 was as follows: GH Building (cost 6,250,000) 5,000,000 Motor Vehicles 22.500.000 Plant and Machinery 7,500,000 Computers 5,000,000 Required: (a) Determine the Company's Chargeable income for the 2019 year of assessment (15 marks) (b) Calculate the tax liability of the company for 2019 assessment year, if any (5 marks) Total 20 marks