Question one

Elegant Productions Ltd is a limited liability company. The company's financial year runs

from January to December. On December $31,2020$ the following Trial Balance was extracted

from the company's books:

Trial Balance for period ending December $31,2020$

Notes:

$(1)$ The allowance for receivables is to be adjusted to $5\%$ of trade receivables. The

allowance for receivables is treated as an administrative expense.

$(2)$ Plant is depreciated at $10\%$ per annum using the reducing balance method and buildings

are depreciated at $6\%$ per annum straight line.

$(3)$ Closing inventory was counted and valued at $$1,450,000.$

$(4)$ $$100,000$ paid for fuel costs related to the succeeding financial year. Fuel costs are

included in administrative expenses.Elegant Productions Ltd is a limited liability company. The company$$s financial year runs from January to December. On December $31,2020$ the following Trial Balance was extracted from the company$$s books.

Required:

$($a$)$ Prepare the statement of profit or loss for the financial period. $(20$ marks$)$

$($b$)$ Prepare the statement of Financial Position for Elegant Productions Ltd for the year

ending December $31,2020(10$ marks$)$

Question two

The following are the relevant percentages for the various deductions:

PAYE $25\%$

NHT $(2\%$ for employee, $3\%$ for employer$)$

NIS $2\mathrm{.}5\%$ for both employee and

employer

NOTE: For NIS, if salary is above $$1,500,000$ then NIS is calculated at $2\mathrm{.}5\%$ of $$1,500,000/12$ i$.$e$.2\mathrm{.}5\%$ of $$125,000=$$$3,125$ per month.

EDUCATION TAX $(2\%$ for employee, $3\%$ for employer$)$

Income tax threshold $$507,312$ annually

a$.$ Danny Blacks is a handyman earning emoluments of $$14,500$ per week.

Calculate:

i$.$ The amounts to be deducted annually from his income. $(5$ marks$)$

ii$.$ His annual net pay $(5$ marks$)$

iii. The employers contributions for the year $(2$ marks$)$

b$.$ Sandy Saint is employed as an accounting clerk earning an annual salary of $$1,800,000.$ She has the use of a $3$ year old company car which cost $$2,000,000.$

The annual taxable benefit table for motor vehicles provide that motor vehicles up to $5$ years old and has an original cost of up to $$2,000,000$ should attract a benefit of $$120,000$ annually.

Calculate:

i$.$ The amounts to be deducted from her salary monthly. $(2$ marks$)$

ii$.$ The monthly net pay. $(6$ marks$)$