The management of Matunda Matamu Limited has presented the following trading and profit and loss account...

  

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The management of Matunda Matamu Limited has presented the following trading and profit and loss account for the year ended 31 December 2019: Ksh. *000 Ksh. *000' Sales Less cost of sales: 18.500 Opening Stock Purchases 4,200 5,600 Cost of goods available for sale Closing stock Gross profit Other incomes: Gain on sale of equipment Interest on savings account (gross) Divided for a quoted company Gain on foreign exchange transactions 9,800 (2,400) (7,400) 11,100 120 40 80 100 11,440 Expenditure: Goodwill amortization 25 Legal expenses Salaries 420 2,000 Bad debts 500 NSSF contribution 60 General expenses Advertising Staff meals Travelling expenses Donations to a trade association 600 300 190 180 40 Property rates Depreciation Interest on long term 45 150 300 Interest on bank overdraft 80 Insurance premiums Cost of stolen stock Provision for bad and doubtful debts Branch closure costs 124 20 200 (5,334) 6,106 100 Net profit 1. The closing stock on 31 December 2019 was valued at a cost phus a mark up of twenty per cent. Legal expenses related to: Preparation of the Memorandum of Association Conveyance fees on purchase of land Renewal of 89 years lease Settling customer disputes Ksh. 150,000 60,000 90,000 100,000 Acquisition of a bank loan 20,000 420,000 2. Sales (expense) includes: Ksh, Directors allowances 720,000 Christmas gills to stafl Golden handshake to a retiring director 600,000 400,000 3. Bad debts include: Loan to director Estimated defaults by trade 200,000 120,000 debtors 4. Advertising expense includes Ksh.100,000 for a neon sign 5, Twenty per cent of the travelling expenses relate to the private usage of company motor vehicles. 6. Capital allowances were agreed with the revenue authority at Ksh.200,000. a. Adjusted taxable profit or loss for Matunda Matamu Limited for the year ended 31 December 2019. b. The tax payable by Matunda Matamu Limited (if any) for the year ended 31 December 2019 c. Determine the dates when tax computed in (b) above is payable given that the taxable profits for the year ended 31 December 2018 was sh.3,200,000 The management of Matunda Matamu Limited has presented the following trading and profit and loss account for the year ended 31 December 2019: Ksh. *000 Ksh. *000' Sales Less cost of sales: 18.500 Opening Stock Purchases 4,200 5,600 Cost of goods available for sale Closing stock Gross profit Other incomes: Gain on sale of equipment Interest on savings account (gross) Divided for a quoted company Gain on foreign exchange transactions 9,800 (2,400) (7,400) 11,100 120 40 80 100 11,440 Expenditure: Goodwill amortization 25 Legal expenses Salaries 420 2,000 Bad debts 500 NSSF contribution 60 General expenses Advertising Staff meals Travelling expenses Donations to a trade association 600 300 190 180 40 Property rates Depreciation Interest on long term 45 150 300 Interest on bank overdraft 80 Insurance premiums Cost of stolen stock Provision for bad and doubtful debts Branch closure costs 124 20 200 (5,334) 6,106 100 Net profit 1. The closing stock on 31 December 2019 was valued at a cost phus a mark up of twenty per cent. Legal expenses related to: Preparation of the Memorandum of Association Conveyance fees on purchase of land Renewal of 89 years lease Settling customer disputes Ksh. 150,000 60,000 90,000 100,000 Acquisition of a bank loan 20,000 420,000 2. Sales (expense) includes: Ksh, Directors allowances 720,000 Christmas gills to stafl Golden handshake to a retiring director 600,000 400,000 3. Bad debts include: Loan to director Estimated defaults by trade 200,000 120,000 debtors 4. Advertising expense includes Ksh.100,000 for a neon sign 5, Twenty per cent of the travelling expenses relate to the private usage of company motor vehicles. 6. Capital allowances were agreed with the revenue authority at Ksh.200,000. a. Adjusted taxable profit or loss for Matunda Matamu Limited for the year ended 31 December 2019. b. The tax payable by Matunda Matamu Limited (if any) for the year ended 31 December 2019 c. Determine the dates when tax computed in (b) above is payable given that the taxable profits for the year ended 31 December 2018 was sh.3,200,000