Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION ONE i. Yaw Manu was employed by Haka Haulage Ltd on a basic salary of GH114,000.00 per annum as the Marketing Manager of the

image text in transcribed

QUESTION ONE i. Yaw Manu was employed by Haka Haulage Ltd on a basic salary of GH114,000.00 per annum as the Marketing Manager of the company. He is provided with the following as part of his conditions of service for 2019 Year of Assessment. He contributes 10% of his basic salary towards the company's Provident Fund which has been approved by the National Pensions Regulatory Authority ii. Watchman allowance of GH400 per month, paid directly to Yaw Manu. iii. Clothing allowance of GH2,650 per annum iv. Garden boy allowance of GH300 per quarter paid directly to Yaw Manu. V. Lunch allowance of GH500 per month. vi. One maidservant on wages of GH1,800 per annum. The amount is paid to the maid servant directly by the company. vii. Bonus of 20% on his annual basic salary viii. Yaw Manu lives in his own four-bedroom house at Abokobi which he purchased with a mortgage from GHL Bank Plc in 2016. This mortgage is his first ever. Total mortgage repayment for the year amounted to GHS 54,458 out of which interest was GHS 34,150. ix. He is entitled to a company car, driver and fuel for both official and private use. X. Yaw Manu was granted a loan of GHS 45,000 by Haka Haulage at an interest rate of 5% per annum for a two-year period. xi. He has a wife and four children; two of whom are in JHS in Accra, and two are gainfully employed; he caters for 3 of his aged relatives. Note: The Bank of Ghana policy rate is assumed to be 14.5% Required: Compute Yaw Manu's chargeable income for 2019 Year of Assessment. (20 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

3, 8, 6, 1, 4, 10, 7 Rank the set of data.

Answered: 1 week ago