The following information relates to Faida bank for the year ended 31^st December 2020. The net profit for the year was sh. 4,800,000,000 after recording the following

	Sh. "000"
Loss on disposal of shares	94,000
Income from trading activities	480,000
Management fees from head office in Uganda	764,800
Fees and commission income	1,460,500
Interest on government treasury bills (Gross)	436,400
Interest on placement with other banks	174,600
Interest in loans and advances to customers	2,460,300
Contribution to deposit protection fund	248,000
Interest on customer deposit	484,000
Occupancy expenses	86,400
Directors emoluments	360,000
Royalties paid	120,000
Rental income	560,000
Income from foreign exchange transactions	243,600
Depreciation expenses	145,300
Provision for interest expenses	84,400
Auditors fees	236,500
Interest on overnight borrowing	146,400
Loss on disposal of equipment	156,000
Installation of an online banking system	134,600
Corporate taxes	372,400
Staff costs	894,000
Finance lease rentals	180,000
Capital Redemption reserve	1,700,000
10% Debenture stock	1,500,000
Purchase of a pickup motor vehicle	1,500,000
Factoring costs for debtors	126,400
Product development costs	324,800
Cost of hiring armed security	265,400
Profit and Loss Account (Debit)	694,000

Additional Information

• 2. Staff costs comprised of the following
• Ex-gratia payments of sh. 94, 000, 0000
• Staff Pension Sh.400, 000,000
• Club Membership sh. 360,000,000
  3. Capital allowance have been agreed at sh. 560,000,000

Required

1. A statement of adjusted taxable profits or loss for Faida bank for the year ended 31^st December 2020
2. Tax payable (refundable) for the year ended 31^st December 2020

Answer rating: 100% (QA)

To prepare the statement of adjusted taxable profits or loss for Faida bank for the year ended 31st ... View the full answer