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Question - A company reported a profit before tax of sh 756,000. The company is liable to a tax rate of 30%. At the start of the year unpaid amount of tax amounted to sh 84,600.
The final assessment of last year tax obligation indicates an overcharge of sh 52,800 .During the year total installment tax paid amounted to sh 300,000. Employees are entitled to a 10% bonus of the net profits after tax and after charging the bonus.
Required -
i. Compute the tax payable at end year.
ii. Prepare the current income tax account.
iii. Compute the staff bonus due for the year.
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