Question

In: Accounting

The following data relates to Sephakor Ltd for the month of April 2020. Names of Employees...

The following data relates to Sephakor Ltd for the month of April 2020.

Names of Employees           Rates per hour (GHS)         units of job                    Bonus (GHS)

Adusei Poku                                 30                                    30                                             760

Kwame Bekoe                             25                                    40                                              430

Samuel Ato                                 40                                     45                                              440

Serwaa Akoto                               45                                    35                                             550

James Obli                                    30                                    25                                              450     

Additional information:

NB - It takes 4hours to complete a unit job

  1. Income tax is 10%
  2. Rent allowance is 15% of basic wages
  3. Risk allowance is at 5% of basic
  4. The SSF contribution is 15%.

   (vi)Provident fund contribution is 13% of basic

  1. SSF & Provident fund are non-taxable deductions

You are required to prepare payroll for the month showing;

  1. Basic wages   
  2. Gross wages   
  3. Total deductions                                                           
  4. Net wages   
  5. State the reasons why SSF & Provident Fund are non-taxable

Solutions

Expert Solution

Payroll for the month of April 2020

S. No Name of Employee Adusei Poku Kwame Bekoe     Samuel Ato Serwaa Akoto    James Obli
A. Rates per hour (GHS) 30 25 40 45 30
B. units of job 30 40 45 35 25
C Basic Wages 900 1,000 1,800 1,575 750
D Add: Bonus 760 430 440 550 450
E Gross Wages ( C + D) 1660 1430 2240 2125 1200
F Less: Rent Allowance (15% of basic wage) 135 150 270 236.25 112.5
G Less: Risk Allowance (5% of Basic Wages) 45 50 90 78.75 37.5
H. Less: SSF Contribution (15 % of basic wage) 135 150 270 236.25 112.5
I Less: PF Contribution (13% of basic wage) 117 130 234 204.75 97.5
J. Total Deductions (F+ G + H + I) 432 480 864 756 360
K. Wages before Tax (E -J) 1228 950 1376 1369 840
L. Income Tax (10%) 122.8 95 137.6 136.9 84
M Net Wages (K-L) 1105.2 855 1238.4 1232.1 756

SSF and PF are non taxable upto certain limit. If that limit exceeds, then it would be taxable. As the PF and SSF do not exceed the limit, this is the reason that the both are non-taxable.  

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

The following data relates to Sephakor Ltd for the month of April 2020. Names of Employees...
The following data relates to Sephakor Ltd for the month of April 2020. Names of Employees Rates per hour (GHS) units of job Bonus (GHS) Adusei Poku 30 30 760 Kwame Bekoe 25 40 430 Samuel Ato 40 45 440 Serwaa Akoto 45 35 550 James Obli 30 25 450 Additional information: NB - It takes 4hours to complete a unit job i) Income tax is 10% ii) Rent allowance is 15% of basic wages iii) Risk allowance is at...
Green Plus Ltd has the following information that relates to the entity’s inventory record in the month of April.
Question 1: Inventory cost assignment Green Plus Ltd has the following information that relates to the entity’s inventory record in the month of April. April Units Unit cost Total cost 1 Beginning inventory 300 $ 3.00 $   900 12 Purchases 600 2.80 1 680 24 Purchases 700 2.70 1 890 1 600 $ 4 470 16 Sales 300 29 Sales 600 Green Plus Ltd uses the perpetual inventory system. Selling price for each unit is $4.00. A physical inventory count...
Haigh Ltd produces garden chairs. The budgeted output and sales for the month of April 2020...
Haigh Ltd produces garden chairs. The budgeted output and sales for the month of April 2020 was 5,000 chairs. The standard cost is: Wood 30 sq metres at £4 per sq metre 120.00 Labour 7 hours at £9 per hour 63.00 Variable overheads 7 hours at £5 per hour 35.00 Fixed overheads 7 hours at £10 per hour 70.00 Total production cost 288.00 Standard profit 32.00 Standard selling price 320.00 The actual results were: Wood 170,000 sq metres at £3.50...
The following information relates to the 2020 debt and equity investment transactions of Sarasota Ltd., a...
The following information relates to the 2020 debt and equity investment transactions of Sarasota Ltd., a publicly accountable Canadian corporation. All of the investments were acquired for trading purposes and accounted for using the FV-NI model, with all transaction costs being expensed. No investments were held at December 31, 2019, and the company prepares financial statements only annually, each December 31, following IFRS. 1. On February 1, the company purchased Williams Corp. 12% bonds, at par value for $560,000, plus...
A company's inventory records indicate the following data for the month of April: April 1 Beginning...
A company's inventory records indicate the following data for the month of April: April 1 Beginning 350 units at $18 each April 5 Purchase 290 units at $20 each April 9 Sale 500 units at $55 each April 14 Purchase 250 units at $22 each April 20 Sale 200 units at $55 each April 30 Purchase 240 units at $25 each The company uses the perpetual inventory system What would be the cost of the ending inventory under the following...
The following information relates to a company ABC Ltd for the year ended 30 June 2020:...
The following information relates to a company ABC Ltd for the year ended 30 June 2020: Transaction totals for the year ended 30 June 2020 R Credit purchases of raw materials 503750 Freight on raw materiasl purchased (on credit) 99833 Sales of finished producgts 11440000 Direct Labour: Factory wages 828600 Pension fund contributions paid by employer 172500 Medical aid paid by employer 227200 UIF Contributions paid by employer 8144 Indirect Labour 500250 Electricity Factory 211450 Administration offices 127900 Rent Expenses...
The following information relates to the 2020 debt and equity investment transactions of Pina Colada Ltd.,...
The following information relates to the 2020 debt and equity investment transactions of Pina Colada Ltd., a publicly accountable Canadian corporation. All of the investments were acquired for trading purposes and accounted for using the FV-NI model, with all transaction costs being expensed. No investments were held at December 31, 2019, and the company prepares financial statements only annually, each December 31, following IFRS. 1. On February 1, the company purchased Williams Corp. 12% bonds, at par value for $530,000,...
Sheffield Skateshop Ltd. reports the following inventorytransactions for its skateboards for the month of April....
Sheffield Skateshop Ltd. reports the following inventory transactions for its skateboards for the month of April. The company uses a perpetual inventory system. Date Explanation Units Unit Cost Total Cost Apr. 1 Beginning inventory 30 $54 $1,620 6 Purchases 15 46 690 9 Sales (35 ) 14 Purchases 20 43 860 20 Sales (25 ) 28 Purchases 20 32 640 (a) Determine the cost of goods sold and cost of ending inventory using FIFO. Cost of Goods Sold $ Ending...
The following information relates to Shelby Simms business for the month of June, 2020: Jun. 1...
The following information relates to Shelby Simms business for the month of June, 2020: Jun. 1 Ms. Simms books showed the following balances brought forward from May 31st, 2020; Loan (Due 2024) $2,500,000; Cash $1,500,000; Inventory $350,000; Bank $900,000; Land and building $2,000,000; Motor vehicle $950,000 Jun. 2 Paid rent for June by cheque $120,000. Jun. 3 Purchased of office furniture by cheque $150,000. Jun. 3 Bought goods by cheque $175,000. Jun. 4 Sold goods for cash $800,000. Jun. 5...
The following data relates to ABC ltd for July 2004. There was no opening stock of...
The following data relates to ABC ltd for July 2004. There was no opening stock of finished units Number of units completed                                              900
 Number of units sold                                                          800
Cost incurred: Direct material                     $2700 Direct labour                       1800 Variable overhead               2500 Fixed overhead                    1500 -------- 8 500 Required: Using both the absorption costing and variable costing methods determine a) Unit cost of completed production for July b) Value of closing inventory. c) Cost of goods sold
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT