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QUESTION 1 Agya Kwaa Paah, who is the Senior Accountant was employed by Kumankuma Company Limited...

QUESTION 1
Agya Kwaa Paah, who is the Senior Accountant was employed by Kumankuma Company Limited on 1st October, 1994 on a basic salary of GH¢15,300.00. His hard work was noticed by his employers which earned him other perks as part of his conditions of service for 2000 Year of Assessment. The following benefits are received by Agya Kwaa Paah:
(a) Well-furnished rented accommodation by his employers, but he pays GH¢70 per annum as rent by way of deductions at source
(b) Clothing Allowance of GH¢120 per quarter
(c) Utility allowance of GH¢85 monthly
(d) Watchman allowance of GH¢510 per annum, paid directly to the guard
(e) Leave allowance of GH¢608 per annum
(f) House help allowance GH¢204 per quarter
(g) Responsibility allowance of GH¢45 per month
(h) Hardship allowance of GH¢107 per month
(i) Meals allowance of GH¢90 quarterly
(j) Risk allowance of GH¢400 per annum
(k) Professional allowance of GH¢355 per annum
(l) Garden boy allowance of GH¢220 per quarter paid directly to Agya Kwaa Paah
(m) General service allowance of GH¢80 per annum
(n) Four cooks each on wages of GH¢200 per annum. The amount is paid directly to the cooks by the company
(o) Medical allowance of GH¢550 per annum
He also has life insurance policies with Donewell Insurance Company:
Policy                             Sum Assured (GH¢)                     Annual Premium (GH¢)
A                                              8,030                                                             880
B                                              8,330                                                             360
C    25,200                                                          3,970
D                                            13,930                                                          1,450


He is a divorcee taking care of nine children; five of whom are in SHS in Koforidua, and the rest are schooling in Abidjan, Ivory Coast; he caters for three of his aged relatives. He also contributes 5.5% of his basic salary to SSNIT.
Required: Calculate his take home pay for 2000. Show all workings and make comments where necessary.
(Total: 20 marks)

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ekkarill92 answered 2 years ago
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