Joseph Ntiamoah has been a PROVISION seller for the past twenty years. Due to the

flooding of the market with cheaper imports, he has made a loss of GHC15, 000 for the

year ended 31/12/2000. His income statement included the following items. From each of

the items listed 1 10, state whether the item is ALLOWED or DISALLOWED.

1. Compensation received for goods damaged by the distributor in the course of moving them

from Tema to his shop in Accra GHC20,000.

2. Legal fees paid in respect of a dispute over a plot of land at Adenta, Accra, to be used for

his private residence GHC120,000.

3. Mr. Ntiamoah failed to supply 20 cartons of milo to a customer at Wa. Mr. Ntiamoah had

to pay a compensation of GHC60,000 for cancellation of the contract.

4. Paid GHC2,000 on account for the purchase of a computer.

5. Rent received in respect of surplus space in his shops GHC50,000.

6. Deducted GHC70, 000 as losses of money advanced to a very good customer.

7. Paid GHC40, 000 for illumination sign to advertise the business.

8. Specific debts of GHC2,000 has been written off as bad debts.

9. Paid GHC1,500 as advertisement to the newspapers to advertise his goods.

10. He charged 10% of his office equipment amounting to GHC10,000 as depreciation in his

income statement.

Allowed or dosallowed for tax return payments