Notes:
i. During the year under review, the firm supplied goods to their customers amounting
to GHS1,500,000 and the withholding taxes paid on their behalf has accumulated to a
tune of GHS9,000 and all certificate pertaining to the withholding taxes has been duly
provided.
ii. Only 25% of the bad debt is a specific debt incurred during the year, whereas, the
remaining 75% was for provision for doubtful debt
iii. The partners decided to share profit 40%, 60% respectively.
iv. Assume a capital allowance of GHS90, 000 granted to the partnership business during
the year.
v. Donation is made up as follows: Osu childrens home GHC1,500, Church harvest
GHC2,500
vi. Entertainment is in respect of Irenes daughter birthday party
vii. Overseas trip was a trip made for Joels private work
viii. The total mileage made for the running of the motor was 210,000km which Joel run
92,000km out of the total mileage for her private rounds
ix. The medical treatment was made for Irenes daughter who had a cervical cancer
x. Salaries of partners: Irene GHC11,000 and Joel GHC10,000.
xi. Interest on capital: Irene GHC18,000 and Joel GHC30,000
Required:
From the above information, determine the net tax liability payable by each partner.
QUESTION FIVE Irene and Joel had been in partnership business for salyangmented drinks Below was extracted from their final committed for tax papers for the year ended 31" Der 2009 Gross profit 31,00 Aal other in Real Dividend 40,000 Interest on balls 120.000 900.000 Less expenses Los on sale of assets 10,000 Denon 4,000 Bad det 30,000 Depreciation 80.000 Damage goods wriden off 2,300 Income tax appeal 10,000 Interest on capital 48.000 Medical treatment 11.000 Salaries of partners 21,000 Cost of potentight Entertainment Oventrip More Net Profit 15.000 20,000 11.200 17.000 Notes 4 During the year under review the fimuld good heating to GHS1,500,000 and the withholding taxes paid on het behalf olid te tune of GHS9, and all certificate pertaining to the willing testas been duly provided Only 25% of the bad debt in a specifiche incurred during the year where, the remaining 75% was for pris for faldet The partners decided to share profitar 60% respectively Arme a capital allowance of GPS, 000 granted to the parte harines during the year Donation is made up as follows: Os childrens bome GHICI.SOC. Church lanet GHC2,500 Entertainment is respect of Irene's daughter binhday Overseas trip was triple for live werk The local mileage made for the naming of the motors210.00hich Joel run $2.000km out of the milf her private The medical treatment was made for Irene's daughter who had cal cancer Salaries of partnere Irene-GHCH 200 and Joel-GC10,000 Interests capital Trent-GHCIK.000 and Joel - GHIC,000 Required: From the above information, determine the settu lihility peable by acte TOTAL 15 MARS QUESTION FIVE Irene and Joel had been in partnership business for several years as supplying imported drinks. Below was extracted from their final account submitted for tax purposes for the year ended 31" Dec 2009. Gross profit 731,000 Add other incomes: Rent 9,000 Dividend 40,000 Interest on t'bills 120,000 169.000 900,000 Less expenses: Loss on sale of assets 10,000 Donation 4,000 Bad debt 30,000 Depreciation 80,000 Damage goods written off 2.300 Income tax appeal 10,000 Interest on capital 48.000 Medical treatment 11,000 Salaries of partners 21.000 Cost of patent right Entertainment Overseas trip Motor expenses Net Profit 15,000 20,000 11.200 17.000 279.500 800.000 QUESTION FIVE Irene and Joel had been in partnership business for salyangmented drinks Below was extracted from their final committed for tax papers for the year ended 31" Der 2009 Gross profit 31,00 Aal other in Real Dividend 40,000 Interest on balls 120.000 900.000 Less expenses Los on sale of assets 10,000 Denon 4,000 Bad det 30,000 Depreciation 80.000 Damage goods wriden off 2,300 Income tax appeal 10,000 Interest on capital 48.000 Medical treatment 11.000 Salaries of partners 21,000 Cost of potentight Entertainment Oventrip More Net Profit 15.000 20,000 11.200 17.000 Notes 4 During the year under review the fimuld good heating to GHS1,500,000 and the withholding taxes paid on het behalf olid te tune of GHS9, and all certificate pertaining to the willing testas been duly provided Only 25% of the bad debt in a specifiche incurred during the year where, the remaining 75% was for pris for faldet The partners decided to share profitar 60% respectively Arme a capital allowance of GPS, 000 granted to the parte harines during the year Donation is made up as follows: Os childrens bome GHICI.SOC. Church lanet GHC2,500 Entertainment is respect of Irene's daughter binhday Overseas trip was triple for live werk The local mileage made for the naming of the motors210.00hich Joel run $2.000km out of the milf her private The medical treatment was made for Irene's daughter who had cal cancer Salaries of partnere Irene-GHCH 200 and Joel-GC10,000 Interests capital Trent-GHCIK.000 and Joel - GHIC,000 Required: From the above information, determine the settu lihility peable by acte TOTAL 15 MARS QUESTION FIVE Irene and Joel had been in partnership business for several years as supplying imported drinks. Below was extracted from their final account submitted for tax purposes for the year ended 31" Dec 2009. Gross profit 731,000 Add other incomes: Rent 9,000 Dividend 40,000 Interest on t'bills 120,000 169.000 900,000 Less expenses: Loss on sale of assets 10,000 Donation 4,000 Bad debt 30,000 Depreciation 80,000 Damage goods written off 2.300 Income tax appeal 10,000 Interest on capital 48.000 Medical treatment 11,000 Salaries of partners 21.000 Cost of patent right Entertainment Overseas trip Motor expenses Net Profit 15,000 20,000 11.200 17.000 279.500 800.000
