Marai Limited is a company licensed on 1st October 2016 to manufacture spirituous beverages in Kenya....
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Marai Limited is a company licensed on 1st October 2016 to manufacture spirituous beverages in Kenya. In the month of October 2016, the company purchased extra n eutral spirits from the local distillers on diverse dates at Sh.100 per litre. The total spirits purc hased was 20,000 litres with an alcohol content of 96.4%. The company manufactures a brand called Marai Vodka with an alcohol content of 40% and p ackaged in 250mls bottles. The plant, being new barely loses any sprits in the lines. There was no stock of raw spirit at the end of the month as it was all compounded. The last stock of finished product, 100cartons of 24 bottles each was ferried to the company's outlet at Mombasa Mall on 31st October 2016. Marai Vodka ex-factory price is at Sh.400 per bottle. Required: a) Compute the Excise duty payable by the company. b) Compute the amount of Excise duty paid by a person using a cellular phone airtime of Sh.1,000. c)Explain the meaning of fortified wine. Marai Limited is a company licensed on 1st October 2016 to manufacture spirituous beverages in Kenya. In the month of October 2016, the company purchased extra n eutral spirits from the local distillers on diverse dates at Sh.100 per litre. The total spirits purc hased was 20,000 litres with an alcohol content of 96.4%. The company manufactures a brand called Marai Vodka with an alcohol content of 40% and p ackaged in 250mls bottles. The plant, being new barely loses any sprits in the lines. There was no stock of raw spirit at the end of the month as it was all compounded. The last stock of finished product, 100cartons of 24 bottles each was ferried to the company's outlet at Mombasa Mall on 31st October 2016. Marai Vodka ex-factory price is at Sh.400 per bottle. Required: a) Compute the Excise duty payable by the company. b) Compute the amount of Excise duty paid by a person using a cellular phone airtime of Sh.1,000. c)Explain the meaning of fortified wine.
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a The excise duty payable by the company can be calculated as follows First calculate the total amou... View the full answer
Related Book For
College Accounting A Contemporary Approach
ISBN: 978-0077639730
3rd edition
Authors: David Haddock, John Price, Michael Farina
Posted Date:
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