Question One

a$)$ Distinguish between "restricted goods" and "prohibited goods" as used under Customs and Excise Act. $(3$ marks$)$

b$)$ Suntech Ltd$.$ is anon resident company in trading business in kenya. The following is its statement of profit or loss for the year ended $31$ December $2023$:

Sh$.$

Gross profit

$24,220,000$

Gain on sale of van ${400}_{,}{000}_{?}$

Expenses:

Directors remuneration

Distribution expenses

Custom duty

Bad debt written off

Salaries and wages

Audit and accountancy fees

General expenses

Water and electricity

Depreciation

Advertising

Purchase of computer software

Transfer to general reserves

Rent and rates

Amortisation of goodwill

Stationery and printing

Legal fees

Net loss

Additional information:

Distribution expenses comprise:

Motor vehicle running expenses

$1,800,000$

Parking fines $,240,000$

Third party insurance

Sh$.$

$\backslash$table$[[24,620,000$