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Ujenzi Contractors is a firm engaged in the property development business. During the year ended 31 December 2011, the firm secured three construction contracts namely; X, Y and Z. The firm computes taxable income from the contracts on the basis of the percentage of completion method.The information relating to the three contracts is as follows:
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Bima Insurance Company Limited provided the following information for the year ended 31 December 2011.
Date posted: February 25, 2019 . Answers (1)
Peter and Kilaka are in a small partnership business trading as Peki Enterprises and sharing profits and losses in ratio of 3:2 respectively. The following details relate to the business for the year ended 31 December 2011.
Weco Ltd is a company incorporated in Kenya. The company controls 80% of the share capital of Jazi Ltd which is also incorporated in Kenya.The following is a statement of comprehensive income of Weco Ltd. for the year ended 31 December 2011.Required:i) A statement of adjusted taxable profit or loss for the year ended 31 December 2011.ii) A schedule showing the final tax payable on or before the sixth, month after the end of the accounting year if the tax liability for the year ended 31 December 2010 was Sh.25,000,000
Sakata Contractors Ltd. has been in the construction business for many years.The following information relates to one of its construction contracts for the year ended 31 December 2011:Additional information:1. Wear and tear allowance is at the rate of 12.5%,2. The company recognises two thirds of annual profits when they arise3. Any contract losses are recognised in full in the year of their occurrenceRequiredi) Contract profit or loss for the year ended 31 December 2011.ii) Taxable profit or loss for the year ended 31 December 2011 assuming that there were no other contracts with a significant degree of completion.
You have been engaged as a tax consultant by Mavuno Bank Ltd. The bank has provided the following details in respect of its operations and balances for the year ended 31 December 2011Required;-i) A statement of adjusted taxable profit or loss for the year ended 31 December 2011.ii) Tax liability of the bank, if any.iii) Identify any further details that you might require from the bank's management in order to determine the accuracy of your computations in (i) and (ii) above.
Samuel and Velom have been operating Savel Enterprises, a partnership business from January 2010 sharing profits and losses equally. The following was the firm's income statement for the year ended 31 December 2011:Income statement for Savel Entreprises for the year ended 31 December 2011.Required:i) Savel Enterprises' taxable profit or loss for the six-month period ended 30 June 2011.ii) Allocation of the profit or loss in (i) above to the partners.iii) Savel Ltd.'s taxable profit or loss for the six-month period ended 3 I December 2011