093 682 682 | 078 868 848 | info@pp-hr.com | Join Discussion | ខ្មែរ | English  | 日本語 | 中文  | ไทย한국어Tiếng Việt

Practical Question 11- Tax on Profit for Trading Company

TOP ONE TRADING COMPANY is a company incorporated in Cambodia since 2014. TOP ONE TRADING COMPANY is merchandising company, and company has two major products.

Under the tax regulations, TOP ONE TRADING COMPANY is required to calculate and pay annual Tax on Profit. The following financial statements in relation to the tax year ended 31 December 2016.

TOP ONE TRADING COMPANY

Income Statement

For 2016

Note
Sale:
    Sale from Computers 220,000
    Sale from Phones 110,000
Total Sale …………………………………….. 330,000
Cost of Goods Sold:
    Computers-COGS ……………………………………. 100,000
    Phones-COGS …………………………………. 90,000
 Total COGS …………………………………….. 190,000
 Gross Profit ……………………………………. 140,000
Total Expense:
   Advertising …………………………………………….. 4,000
   Salary …………………………………………………….. 60,000
   Office supply ………………………………………….. 700
   Electricity ………………………………………….. 2,000
   Water supply………………………………………….. 400
   Rental …………………………………………………… 12,000
   Telephone and Internet………………………… 800
   Depreciation………………………………………….. 10,600 1
   Entertainment …………………………………… 1,700
   Other expense…………………………………… 10,400 2
Total Expense………………………………………….. 102,600
Profit/(loss) before tax ………………………………… 37,400




TOP ONE TRADING COMPANY

BALANCE SHEET

AS OF 31 DECEMBER 2016

 Note
Current Assets
CASH
Cash on Hand  10,000
Cash at Bank   50,000
 60,000
AR     40,000
INVENTORY    70,000 3
OTHER ASSET
       Advance for project…..       7,130
      Prepayment  of Profit Tax.      3,000 4
     10,130
Total Current Assets  180,130
Fixed Assets
          Computer  Equipment..       1,200
            Office Equipment..       1,600
             Office Furniture…       2,400
        Vehicle ………………     12,000
      Other Fixed Assets………       4,000
Total Net Fixed Asset  ………………..  ………….    21,200  
Total Assets  ……………….  ………….  ……….  201,330  
Current Liability (CL)  
          AP……  ……………..  …………     50,000
         Other CL
              Other Payable…..       1,000 5
               Tax liability…..           930
        1,930
Total Current Liability  ……………….  …………..      51,930
EQUITY
     Owner’s Capital…..  100,000
   Retained Earning…  12,000
Current Profit before tax…  37,400
TOTAL EQUITY……  …………… ………..    149,400
TOTAL LIABILITY &  EQUITY…  ……..  ………..  201,330  

The following notes are as follows:

Note 1

Depreciation expense is based on accounting policy.

Note 2

  • Company made provision for warranty expense on sold products is $500.
  • Repair and maintenance of company’s car is $500.
  • Patent expense is $300.
  • TOP ONE TRADING COMPANY donated $3,000 and $1,200 to theCambodian Red Cross (CRC) and homeless people respectively.

Note 3

Company has beginning inventory of $50,000.

Note 4

Prepayment of Profit Tax is excluded revenue earned on December 2016 for tax calculation base.

Note 5

Company made provision for warranty on sold products is $500.

Other information as follows:

Depreciation of Tangible Fixed Assets Class 2 – 4 (Declining Balance Method) for 2015

Tax profits are $10,000 and $7,000 for year 2014 and 2015 respectively.

Required: 

Ignore other information, solve the following issues:

Declare tax on profit and complete financial figures (2016) if any accordance with tax form requirement from page 3/16 to 16/16. You may require to adjusted income statement and balance sheet.

Download the following 5 Answer Here :

1.TOP for Test 11-Answer

2.Please note

3.IS

4.BS

5.working test 11

If free article is helpful, please donate free writers:

Find Jobs Here !

Phnom Penh HR

Post Job Announcement Free:
Step 1 Go to : www.pp-hr.com
Step 2 Click Menu: Register
Step 3 Click Menu : Post Job Free
Phnom Penh HR Services:
1.Recruitment Service
2.Cambodia Tax Consulting
3.Accounting Service Preparation
4.Outsourcing service
5.Internal Auditing Service
Services by ACCA | CPA,Tax Agent
Diploma in Cambodia Tax,and MBA
**Contact Us Via 093 682 682
078 868 848| info@pp-hr.com

If article is helpful, Donate free writers: