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Question P.2 Requirement : On the assumptions that an accrual basis applies and the cost of sales and other outlays are allowable deductions for tax
Question P.2
Requirement:
On the assumptions that an accrual basis applies and the cost of sales and other outlays are allowable deductions for tax purposes, calculate the pharmacys taxable income based in Australia
Corner Pharmacy is a chemist shop. It provides no credit sales but accepts major credit cards. It sells items off the shelf and the proprietor fills prescriptions for cash and for payments made under the Pharmaceutical Benefits Scheme [PBS] Three (03) assistants are employed. The following financial data is provided: Cash sales Credit card sales- Credit card reimbursements -- PBS: -$300,000 $150,000 $160,000 -$25,000 -$30,000 -$200,000 -$195,000 Opening balance Closing balance -- - Billings - Receipts -- Stock -$150,000 -$500,000 $200,000 -$60,000 $50,000 Opening stock- - Purchases--- Closing stock - ---$ Salaries Rent
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