Adam and Eve are in partnership sharing profits in a ratio 1:1. The following data relates...
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Adam and Eve are in partnership sharing profits in a ratio 1:1. The following data relates to 2020 year of assessment: Revenue made for the year Less: Cost of sales Gross profit Less: Expenses Net profit GHE 100,000.00 40,000.00 60,000.00 50.000.00 10.000.00 The following were added to expenses: Depreciation Purchase of computer Salary paid to Eve Interest on loan to Adam Interest on capital: Adam Eve Provision for doubtful debts 1,000.00 10,000.00 5,000.00 4,000.00 1,000.00 800.00 1,500.00 The following additional information is available: Capital allowance agreed with GRA was GH€ 1,300.00. ii) Adam is married with one child schooling in the USA. Eve has three aged dependent relatives with one child in JHS in Accra. Required: a) Adjust the net profit for the period for tax purposes. b) Compute the chargeable income for each partner. Calculate the income tax for the 2020 year of assessment for each partner Adam and Eve are in partnership sharing profits in a ratio 1:1. The following data relates to 2020 year of assessment: Revenue made for the year Less: Cost of sales Gross profit Less: Expenses Net profit GHE 100,000.00 40,000.00 60,000.00 50.000.00 10.000.00 The following were added to expenses: Depreciation Purchase of computer Salary paid to Eve Interest on loan to Adam Interest on capital: Adam Eve Provision for doubtful debts 1,000.00 10,000.00 5,000.00 4,000.00 1,000.00 800.00 1,500.00 The following additional information is available: Capital allowance agreed with GRA was GH€ 1,300.00. ii) Adam is married with one child schooling in the USA. Eve has three aged dependent relatives with one child in JHS in Accra. Required: a) Adjust the net profit for the period for tax purposes. b) Compute the chargeable income for each partner. Calculate the income tax for the 2020 year of assessment for each partner
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Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
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