Unformatted text preview: (b) The 2% provision is made by reference to prior years’ performance of debtors payments. In fact, trade debts owing by two debtors amounting to $8,000 are long outstanding despite repeated legal actions have been taken but still in vain. This amount is not yet charged to the accounts as shown above. (c) Sundry expenses include cost of purchase of loose tools/utensils for $5,000, 70% of which relates to replacement of those worn out during the year. Other sundry expenses are allowable. (d) Depreciation allowance was calculated to be $44,375. (e) Only Mr. X elects personal assessment for the year. Required: Compute the 2009/10 profits tax payable by the partnership (ignore tax relief and provisional tax). Check Figures: Assessable profit: $41,785 Profits tax payable: $2,384...
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- Spring '11
- Expense, Generally Accepted Accounting Principles, Mr. X, Sundry expenses