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5 months ago
Mr. A. Kiriama prepared the following profit and loss account for his business for the year ended
31 December 2017

Income
Sh.                           Sh. Sales                                                                                18,400,000
Discount received                                                                600,000
Profit on sales of shares                                                       100,000
Foreign dividends received                                                    15,000
Foreign exchange gain                                                            35,600
Insurance recovery on stolen stock                                       180,000
19,330,600
Expenditure
Purchases                                       12,800,000
Salaries                                            1,200,000


Audit Fee                                             45,000
Tax consultancy fee                             30,000
Legal expenses                                  325,000
Licenses & Permits                              64,000
Depreciation                                      145,600
Loss on sale of equipment                    78,400
Bank Charges                                       44,200
Donations to a political party              50,000
Subscriptions                                     12,800
Repairs & Maintenance                  174,200
Rent & Rates                                   150,000
Purchase of loose tools                     90,000
Commission & brokerage tools        23,000                   (15,232,700)
4,097,900
Additional  Information:
1.  Legal expenses comprise:                                                                           Sh.
   Employment contracts                                                                      5,000
   Acquisition of trademark                                                                80,000
   Successful  defense of a legal suit for breach of a trade contrac  200,000
   Debt collection                                                                                40,000
325,000

2.

Subscriptions comprise:

Sh.


Chamber of commerce and industry
2,800


Child care international
8,000


Golf club membership
2,000



12,800

3.  Repairs and maintenances expense includes Sh. 74,200 used for the renovation of a store.
4.  Capital allowance were agreed with the tax authorities at Sh. 680,000.
Required:
Prepare the adjusted taxable profit or loss for Mr. A. Kiriama for the year ended 31 December 2017
 (12 Marks)
Determine the tax payable (if any), from the computations in (i) above                   (2 Marks)      Indicate the latest date for submission of tax returns by Mr. A. Kimiti.                    (2 Marks)
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