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The management of Matunda Matamu Limited has presented the following trading and profit and loss account for the year ended 31 December 2019: kish.sh. .0001

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The management of Matunda Matamu Limited has presented the following trading and profit and loss account for the year ended 31 December 2019: kish.sh. .0001 Sales 18.500.00 Loof sales Opening Stock 4,200.00 Purchases 5.000.00 Cost of goods available for sale 9,800,00 on stock 2.400.00112.400.000 Kross profit 11, 10000 Other incomes Kain on sale of equipment 120,00 Interest on savings account) 40.00 Divided for a quoted company 30.00 Gain on foreign exchange transactions 100.00 11.400.00 Expenditure Kioodwill stization 25.00 Lorales 420.00 Salaries 2.000 Bad debts S0000 NSSF contribution 60.00 General experts Advertising 100.00 Stall meals 19000 Travelling expenses 180.00 Donations to a trade association 40.00 Property is 45.00 Depreciation 150.00 Interest on long term 000 Interest on bank over 50,00 Insurance premium 124.00 Kost of stoleneck 20.00 Provision for bad and doubcul debts 200.00 Branch closure costs 100.00 15,334.00) Net profit 6.106.00 Niste 1. The closing stock on 31 December 2019 was valued at a cost plus a mark up of twenty per cent. Legal expenses related to Preparation of the Memorandum of Association 150.000 Conveyance for purchase of land 60,000 Renewal of 9 years lase 90,000 Settling customer disputes 100.000 Acquisition of a bank loan 20,000 2. Sales (expense) include Ksh Directors allowances 720,000 Christmas gifts to staff 00000 Golden handshake to a retiring director 400.000 3. Bad debts include Lean to director 200,000 Estimated default by trade 120,000 debtors General expenses Advertising Sual meals Travelling expenses Donations to a trade association Property rates Depreciation Interest on long term Interest on bankaverda Insurance premiums Cost of stolen stock Provision for bad and doubtful debts Branch closure costs Net profit 600.00 300.00 190.00 180.00 40.00 45.00 150.00 300.00 80.00 124 20.00 200.00 100.00 15.334,00) 6.10500 1. The closing stock on 31 December 2019 was valued at a cost plus a mark up of twenty per cent. Legal expenses related to kish Preparation of the Moondum of Association 150.000 Conveyance fees on purchase of land Renewal of 89 years lase 90,000 Settling customer disputes 100,000 Acquisition of a bank loan 2. Sales (expense) includes kish Directors allowances 720,000 Christmas gifts to start 600.000 Goldon handshake to a retiring director 400,000 3. Bad debts include Loan to director 200.000 Estimated defaults by trade 130,000 debtors 4. Advertising expense includes Ksh. 100,000 for a neon sign 5. Twenty per cent of the travelling expenses relate to the private usage of company motor vehicles. 6. Capital allowances were agreed with the revenue authority at Ksh. 200,000 Required a. Adjusted taxable profit or loss for Matunda Matamu Limited for the year ended 31 December 2019. b. The tax payable by Matunda Matamu Limited (if any) for the year ended 31 December 2019 c. Determine the dates when tax computed in (b) above is payable given that the taxable profits for the year ended 31 December 2018 was sh.3,200,000

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