Baygon ltd has presented the following income particulars for the year 2022; Ksh 000 Sales 1,942,000 Purchases
Fantastic news! We've Found the answer you've been seeking!
Question:
Baygon ltd has presented the following income particulars for the year “2022”;
| Ksh ‘000’ | |
| Sales | 1,942,000 |
| Purchases | 840,500 |
| Closing stock | 150,000 |
| Cost of sales | 612,000 |
| Interest from bonds held in Ghana | 32,400 |
| Discount received | 26,750 |
| Dividend from Limuru Tea ltd (net) | 134,000 |
| Operating expenses –allowable | 920,000 |
| Depreciation | 60,000 |
| Finance cost | 98,000 |
Additional information:
1. The company had a policy of maintaining a closing stock that’s twice the value of the opening stock.
2. The closing stock above is undervalued by 20%
Required:
Calculate the taxable income for Baygon ltd for the year “2022”. The Tax laws for 2022 apply accordingly.
Expert Answer:
To calculate the taxable income for Baygon ltd for the year 2022 we need to follow these steps 1 Calculate the gross profit Gross profit Sales Cost of sales Gross profit 1942000 612000 Gross profit 13... View the full answer
Related Book For 
Posted Date:
