Winifred Ltd produces energy drink for the Ghanaian market. The company acquired a plant and machinery...

 

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Winifred Ltd produces energy drink for the Ghanaian market. The company acquired a plant and machinery in 2014 at the cost of Gh 16,000. Improvement cost of GH 1,450 was incurred on plant and machinery in 2017. It commenced business on 1/4/2016 preparing accounts to 31st December each year. The company bought three (3) computers valued at GH 1,500 each on 15/03/2015. Improvement cost of GH 800 was incurred on computers in 2016. It sold one computer for GH 1,650 on 01/10/2016. In the year 2017, the remaining computers were sold for GH 1,850. In 2018 the company bought two (2) new computers at the cost of GH 4,000. In the year 2019 the company sold one of the computers at the cost of GH 3,000. In 2019, the other computer was exchanged for a Trademark valued at Gh 4,000 which will be used by the company for fifteen years with effect from 2019. Required: Compute the capital allowances for the relevant years of assessment Winifred Ltd produces energy drink for the Ghanaian market. The company acquired a plant and machinery in 2014 at the cost of Gh 16,000. Improvement cost of GH 1,450 was incurred on plant and machinery in 2017. It commenced business on 1/4/2016 preparing accounts to 31st December each year. The company bought three (3) computers valued at GH 1,500 each on 15/03/2015. Improvement cost of GH 800 was incurred on computers in 2016. It sold one computer for GH 1,650 on 01/10/2016. In the year 2017, the remaining computers were sold for GH 1,850. In 2018 the company bought two (2) new computers at the cost of GH 4,000. In the year 2019 the company sold one of the computers at the cost of GH 3,000. In 2019, the other computer was exchanged for a Trademark valued at Gh 4,000 which will be used by the company for fifteen years with effect from 2019. Required: Compute the capital allowances for the relevant years of assessment

Answer rating: 100% (QA)

Computations of Capital Allowances Plant and Machinery 2014 Cost GH16000 ... View the full answer