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Accounting to IAS 12, the following balances were extracted from the books of XYZ Ltd, a manufacturing firm in Ghana on December 31, 2021. i. Profit before Tax                GHS100,000 ii. Depreciation of Furniture        GHS3,200 iii. Depreciation of Motor Vehicle  GHS 5,200 iv. Office rent per annum         GHS12,000 v. CEO's residential rent per annum  GHS15,000 vi. DVLA fines      GHS200 vii. Cost of motor vehicle   GHS50,000 viii. Cost of furniture   GHS40,000 Required: i. Compute the taxable profit ii. Compute the tax expense assuming previous year's tax outstanding was GHS2,000 due to assessment difference. iii. Total tax expense for the year.

Accounting to IAS 12, the following balances were extracted from the books of XYZ Ltd, a manufacturing firm in Ghana on December 31, 2021. i. Profit before Tax                GHS100,000 ii. Depreciation of Furniture        GHS3,200 iii. Depreciation of Motor Vehicle  GHS 5,200 iv. Office rent per annum         GHS12,000 v. CEO's residential rent per annum  GHS15,000 vi. DVLA fines      GHS200 vii. Cost of motor vehicle   GHS50,000 viii. Cost of furniture   GHS40,000 Required: i. Compute the taxable profit ii. Compute the tax expense assuming previous year's tax outstanding was GHS2,000 due to assessment difference. iii. Total tax expense for the year.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Accounting to IAS 12, the following balances were extracted from the books of XYZ Ltd, a manufacturing firm in Ghana on December 31, 2021.

i. Profit before Tax                GHS100,000

ii. Depreciation of Furniture        GHS3,200

iii. Depreciation of Motor Vehicle  GHS 5,200

iv. Office rent per annum         GHS12,000

v. CEO's residential rent per annum  GHS15,000

vi. DVLA fines      GHS200

vii. Cost of motor vehicle   GHS50,000

viii. Cost of furniture   GHS40,000

Required:

i. Compute the taxable profit

ii. Compute the tax expense assuming previous year's tax outstanding was GHS2,000 due to assessment difference.

iii. Total tax expense for the year.

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