Shiva & Sons Limited Commenced business on 1st March 2014 making his accounts to coincide with that of the government .
The following assets were bought and used in the business
Assets Date of Purchase Amount
GHS
Plant and machinery 30/04/2014 120,000
Motor Vehicle:
Toyota (GT 4002-16) 29/12/2014 90,0000
2 Computers 11/08/2014 50,000
Furniture and Fittings 15/03/2014 40,000
Office Buildings 03/02/2014 150,000
Assets Date of Purchase Amount
Motor Vehicle :
BMW (UT 366-16) 06/05/2015 350,000
Addition of Building 15/01/2015 80,000
Car Number GT 4002 -16 used by General Manager was sold to him for GHS 15,000 on 25/03/2016 and also replaced the engine with the cost of BMW (GT 366 -16) at a cost of GHS 10,500 with written down value of GHS 120,000
Profits declared up to 31/12/2014 were as follows:
GHS
Period to 31/12/2014 105,000
Year to 31/12/2015 190,000
Year to 31/12/2016 165,000
You are required to determine the chargeable income of the company for the relevant years.
Chargeable Income of the company
| Particular | Amount($) | Amount($) |
| Plant and machinery | 120000 | |
| Motor vehicle : Toyota | 900000 | |
| 2 computers | 50000 | |
| furniture and fittings | 40000 | |
| Office building | 150000 | |
| Motor vehicle : BMW | 350000 | |
| Building | 80000 | |
| Car number GT 4002 - 16 | 15000 | |
| Replaced the engine with the cost of BMW | 10500 | |
| Down value of GHS | 120000 | 1835500 |
| Less : | ||
| GHS period to 31/12/2014 | 105000 | |
| Year to 31/12/2015 | 190000 | |
| year to 31/12/2016 | 165000 | 460000 |
| Chargeable income Of the company | 1375500 |
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