pathfinder - The Institute of Chartered Accountants of Nigeria
pathfinder - The Institute of Chartered Accountants of Nigeria
pathfinder - The Institute of Chartered Accountants of Nigeria
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
PATHFINDERQUESTION 3Mr. James makes up his accounts to 30 September every year. Below is the account forthe year ended 30 September 2008:NNGross Pr<strong>of</strong>it 455,000Less: Rent 26,000Bad debts 18,000Repairs to Building 3,000Donations 5,000Preliminary expenses 3,000Legal and Pr<strong>of</strong>essional fees 6,000Loss on disposal <strong>of</strong> vehicle 3,000Depreciation 8,000Other allowable expenses 150,000 (222,000)Net Pr<strong>of</strong>it N233,000You are provided with the following information:(i)(ii)<strong>The</strong> gross pr<strong>of</strong>it included N165,000 which was a pr<strong>of</strong>it on sale <strong>of</strong> fixed assets.Donations include purchase <strong>of</strong> new furniture <strong>of</strong> N1,300 donated to the IrawoSocial Club.(iii) Legal and pr<strong>of</strong>essional fees comprise <strong>of</strong>: NRenewal <strong>of</strong> Short term lease 1,200Renewal <strong>of</strong> Long lease 3,000Cost <strong>of</strong> Tax Appeal 1,800(iv) Bad debt included a general provision for bad and doubtful debts <strong>of</strong> N7,500Required:(a) Compute the adjusted pr<strong>of</strong>it for the relevant year <strong>of</strong> assessment (7Marks)(b) Write short notes on:(i) Badges <strong>of</strong> trade; and(4 Marks)(ii) Foreign employment(4 Marks)(Total 15 Marks)INTERMEDIATE EXAMINATION - NOVEMBER 201062
Change language