+ 133

Total Expense +200

+60

Interest Payable $500

Find Gross - Tax part of dividend goes to Tax note $133

Dr Tax A/c $133 Cr. Operating Income $133

EPS
 DR Cash Cr Rental Income

Dr Insurance Prepaid Cr Admin Expense

Dr Distribution Cost
Cr Wages Payable

Taxation notes

C/L NCL = $5,000-$1,000 = $4000

Dr. Interest Expense

Cr. Interest Payable

C/A

NCA = 12,000 - 2,000 = 10,000

Dr. Retained Earnings Cr Geneal Reserves

Add in Tax note schedule. Cr Deferred tax

Payable

SOE Dr. Retained Earnings Cr. Ordinary Share Capital

Dr. Ordinary Share Capital $1,350

Cr. Retained Earnings$1,350
 Excess Amount = $500,000 *.20

less $100,000 in excess

penalties for late payments of income tax is NOT

allowed.
legal cost for collection book debts allowed

Rent Not Allowed $1,800/15=$120*5

Rent Not Allowed $600

Not important