Use the information given below to fill in the following forms required by the Secretariat General of
Question:
Use the information given below to fill in the following forms required by the Secretariat General of Taxation: Use the appropriate form.
1- Registration form
2. Provisional return of income Form
3. Final return of income form
Information:
Mohammed Ali and Ahmed Al Farsi established their own Auditing office for auditing accounts and financial services on 1st January 2016. Both of them share the profit and loss. Their business is called “MA Auditing Services Co”. The professional license no. is 3291, issued by the Ministry of Commerce and Industry, Muscat, on 1st January, 2016 and its expiry date is on 1st January 2019. This license is temporary. It is for three years only but it is renewable.
They registered their business at the Ministry of Commerce in Muscat on 7th March 2016. The capital written in the commercial registration was OMR 50,000. On 19 March 2016, they registered electronically at the Secretariat General for Taxation. However, they started their operation on 1st April 2016. Therefore, the first accounting period ended on 31stDecember 2016.
The estimated taxable income earned during the first accounting period was OMR 275,000. He submitted the provisional return on 23 February 2017 while the final return was submitted on 1stApril 2017. The auditing office is located in Ruwi, Muscat and its address is as follows:
-Post Box no.54, P.C. no. 112, Commercial registration no. : 1/224698, Muscat, Telephone no.: 24494329 Fax no. : 24494338. Mohammed Ali is the Deputy Executive Manager.He is the Principal Officer. He lives in Muscat and his ID no. is 11753978 and mobile number is 99654325.
The trial balance of accounts for the year ended on 31st December, 2016 is provided below:
| Account Name | Debit | Credit |
| Cash | 177,936 | |
| Accounts Receivable | 99,116 | |
| Inventory | 1,000 | |
| Property, plant and equipment (net) | | 40,000 |
| Capital | | 50,000 |
| Gain from disposing a car | | 2,000 |
| Loss from disposing securities listed in MSM | 8000 | |
| Sales | | 450,000 |
| Rental Revenue | | 15,000 |
| Cost of services provided | 13,500 | |
| Wages and Salaries (Employees) | 25,200 | |
| Administrative expense | 18,450 | |
| Salaries Expenses (Partner) | 60,000 | |
| Depreciation Expenses | 22,400 | |
| Sponsorship Expense | 21,000 | |
| Donations | 15,000 | |
| Rent Expenses | 36,000 | |
| Contributions to Public Authority for Social Insurance | 2,898 | |
| Audit fees | 5,000 | |
| Vehicle Cost | 17,500 | |
| Bad debts expense | 31,000 | |
| Tax consultancy | 3,000 | |
| Total | 557,000 | 557,000 |
Additional Information:
1) Rent expense was paid to the landlord and both signed the rent contract and agreed to the contract terms.
2) OMR 15,000 was paid to a charitable team which is approved by the financial affairs and energy resources council.
3) Mohammed Ali and Ahmed Al Farsi are general partners. Mohammed Ali is an independent Executive Manager while Ahmed is working on full time-basis. His salary in the contract is OMR 6,000.
4) Bad debts of OMR 31,000 were uncollectible. However, one debtor has been bankrupted and he was due for OMR 6,500. They received a bankruptcy certificate form the court pertinent to this debtor.
5) Company paid rent OMR 30000 for two villas: one villa costing OMR 20,000 for running their services and another one costing OMR 10,000 used as an accommodation their employees.
6) The beginning balance of carrying value of plant and machines was OMR 54,000. Straight-line Method was used with depreciation rate of 25%.
7) Company paid sponsorship fees of OMR 21,000 including OMR 1000 for commission.
Expert Answer:
1 Registration form 1 Business name MA Auditing Services Co 2 Business address Post Box no54 PC no 1... View the full answer
