GAUTENG DEPARTMENT OF EDUCATION SENIOR SECONDARY INTERVENTION PROGRAMME ACCOUNTING GRADE 12 SESSION 1 (LEARNER NOTES) TOPIC 1: COMPANIES LEDGER ACCOUNTS SECTION A: TYPICAL EXAM QUESTIONS HINTS REMEMBER THE NEW LEDGER ACCOUNTS Income tax only comes about as an adjustment at the end of the year All provisional payments to SARS affect the bank account 50 marks 30 minutes QUESTION 1 COMPANY LEDGER ACCOUNTS You are provided with information relating to Parboo Ltd for the year ended 29
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Employees" Please respond to the following: After reviewing the scenario‚ identify at least three (3) key benefits that you could negotiate with your employer or potential employer that could reduce your tax liability. Provide specific examples of such benefits. 1) Increase the amount of income you contribute to your 401K For example: If your 401K is not fully funded the IRS’s annual limit is 17‚500 in 2014 and $18‚000 in 2015. 2) The Automobile Expense. 56 cents per mile driven for business purposes
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FNSACC601A Prepare complex tax returns Test A – Marking Guide Important advice about this Marking guide This document provides detailed guidance for assessors or teachers only. It is to be used as a reference document for marking. It is not for use as a recording document. It is not appropriate under any circumstances to issue this document to students. About this guide This document contains advice for assessors and teachers‚ to allocate marks or results for all the learning activities
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Memo To: John & Jane Smith From: Re: Memo summarizing various tax issues 1. John Smith ’s tax issues: Issue a) How is the $300‚000 treated for purposes of federal tax income? Applicable Law & Analysis: http://www.irs.gov/businesses/small/selfemployed/index.html Conclusion: The $300‚000 will be treated as self- employed income. Generally you are self-employed if you carry on a trade or business as a sole proprietor‚ independent contractor‚ or if you are a member of a partnership
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the taxpayer’s gross income in 2014. A check received is generally considered a cash equivalent and‚ upon receipt‚ must be recognized as income by a cash basis taxpayer. 28. $10‚000 @ 6% x 5 years = $13‚382. Tax at 28% on interest = $947‚ After-tax proceeds = $12‚435 $10‚000 @ 5.5% x 5 years = $13‚070. Therefore this bond is a better deal. The land needs to earn at least $3070 after tax to beat the tax-free bond. But tax at 15% will be levied on the gain. The before tax gain is 3070 / (1 - .15)
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Adam Smith’s Four Main Canons of Taxation ↓ A good tax system is one which is designed on the basis of an appropriate set of principles (rules). The tax system should strike a balance between the interest of the taxpayer and that of tax authorities. Adam Smith was the first economist to develop a list of Canons of Taxation. These canons are still regarded as characteristics or features of a good tax system. Adam Smith gave following four important canons of taxation. 1. Canon of Equity The principle
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Culture and Customs 1 Education 1 Laws and Policies 2 Laws and regulations applicable to foreign investment in China 2 Policies and Preferences 3 Industrial Policies 3 Regional Policies 6 Policies and measures relevant to the foreign investment: 7 Tax Policies 8 Forms of Foreign Investment 14 Chinese-Foreign Equity Joint Ventures 14 Chinese-Foreign Cooperative Joint Ventures 14 Wholly Foreign-Owned Enterprises 15 Joint Stock Limited Companies with Foreign Investment 16 Foreign Investment Companies
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176‚790 305 306 307 308 317 401 10‚625 15‚725 23‚023 125‚000 19‚275 8‚750 15‚725 25‚000 Accrued interest Dividends payable Federal income tax payable Notes payable-short term State Income Tax Payable Notes payable-long term Total liabilities Owners ’ Equity: 501 Common stock 505 Other contributed capital 601 Retained earnings 605 Dividends 610 Current net income Total owners ’ equity Total liabilities & owners ’ equity E-1 E-1 E-1 E-1 F-1 46‚988 1‚400 365 340 438 #5 #6 #7 #8 #18 225‚883 416
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between an S corporation and a C corporation. The difference between a C corporation and S corporation is a C corporation pays corporate income taxes on profits and then the profits are distributed to the owners‚ whom are responsible for paying income taxes on these earnings. S corporations do not pay corporate taxes on profits‚ but they pass the entire tax liability onto the owners. The owners of an S corporation are limited to no more than 100 U.S. citizens. 1-6. You are a shareholder
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certain requirements perceived by the code‚ to wit: 1. Registration a. Accomplishment of Application for Registration FOR SELF-EMPLOYED AND MIXED INCOME INDIVIDUALS Tax Form BIR Form 1901- Application for Registration for Self-Employed and Mixed Income Individuals‚ Estates/Trusts Documentary Requirements For single proprietors‚ mixed income earners › Photocopy of Mayor’s Business Permit (or duly received Application for Mayor’s Business Permit‚ if the former is still in process with
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