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Tutorial 2 - ACc3

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17 views

Tutorial 2 - ACc3

Uploaded by

Emmanuel Ofori Acheampong
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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TAXATION TUTORIAL QUESTIONS

KSB, Accounting 3

Q1: Taxation of Partnerships


Three friends Mathew, Mark and Luke have been in the trading business as partners for several
years. They share profits in the ratio 3:2:1 and prepare accounts to 31st December each year.
The assets of the partnership as at the end of 2018 year of assessment were:
GH¢
Office Equipment 135,000
Pick-ups 68,000
Motor Car 20,500
Luke resigned from the partnership on 1st July, 2020 and on his exit, the remaining partners
continued the business agreeing to share profits equally.
The engine of the motor car was replaced on 15th March, 2019 at a cost of GH¢10,000 whereas
additional assets were acquired by the business as follows:
a) A building was purchased at a cost of GH¢520,000 on 15th May, 2020
b) A Nissan Patrol 4 x 4 was acquired at a cost of GH¢250,000 on 31st August, 2020
Some of the office equipment were sold on 15th October, 2020 for GH¢20,500.

The partnership’s adjusted profit for tax purposes were reported as follows:
GH¢
Year to 31/12/19 250,000
Year to 31/12/20 320,000
Year to 31/12/21 385,000

Personal Data of the Partners are as follows:


Name Marital Status No. of children Schools
Mathew Widower 4 All in SSS
Mark Married 2 JSS & SSS
Luke Single 2 -
-
Required:
Compute the chargeable Income of each partner for all the relevant years of assessment on the
assumption that no other incomes accrued to any of the partners.

Q2: Taxation of Sole Proprietors


Aisha started petty trading on 1st January, 2020 but failed to keep proper books of account or
records and has not submitted accounts to Ghana Revenue Authority as required since
commencement. Ghana Revenue Authority obtained the following information during an
interview with her.

During the year, she received dividend from Pacific Bank (Net of 10%) - GHS400. The following
personal expenses were incurred during the year:
GHS
• Gifts to fiancée 1,956
• Average spending on food 12 per day
• Cash to mother 300 per month
• Rent paid 120 per month
• Utilities 102 per month
• Funerals & Entertainment 200 per month
Required: Compute Aisha’s Assessable Income for 2020 Year of Assessment

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