Question
Task 1: Omani Rials 3,100Al Salma Trading LLC is a registered Company in Muscat Securities Market, Sultanate of Oman doing business in manufacturing industry since
Task 1:
Omani Rials 3,100Al Salma Trading LLC is a registered Company in Muscat Securities Market, Sultanate of Oman doing business in manufacturing industry since 1990. It has the following financial information for the year ended 31st December 2019.
Transactions RIALS
Cost of goods sold 243,560
Partner's remuneration 5,000
Sponsorship fees 6,000
Rent 1,900
Provision for doubtful debts 780
Electricity charges 1,890
Exchange losses 450
Motor expenses 1,470
Purchase of Motor Vehicles 45,000
Salaries 36,000
Return inwards 470
Carriage outwards 1,320
Sales 740,000
Telephone bill 1,500
Slow moving stock 3,840
Depreciation on Buildings @ 4 % 4,000
Depreciation on Motor vehicles @ 33.33 % 2,700
Staff gratuity fund 39,450
Donations ( listed organizations ) 1,560
Insurance of vehicles 2,340
Additional Information:
- provision for slow moving stock Omani Rials 570
- Outstanding Electricity expenses Omani Rials 500
- Outstanding Telephone bills Omani Rials 300
- Fee paid to an Accountant consultant Omani Rials 1,200
- Fee paid to Tax consultant for tax purposes are
- Al Salma Trading LLC's Tax paid in Advance is Omani Rials 1,500
- Outstanding Rent Omani Rials 200
- Obsolete stock provisions were estimated at Omani Rials 720
- Maintenance provisions at Omani Rials 10,000
- Losses carry forward from previous year are Omani Rials 25,000
Required:
- As a qualified accountant, Classify the above Additional Information as Allowed, Not Allowed and partly Allowed items under The Law of Profit Tax on Commercial and Industrial Establishments Royal Decree No.77/89, amended by Royal Decree 9/2017.
- Compute the Corporation Tax payable for the year ending 31st December 2019.
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