Taxation law, Accounting Basics

Ken, a resident, is a handyman who contracts with people to do a variety of jobs including repairing fences, fixing household items and small painting jobs. As part of this work, Ken is occasionally required to supply materials such as wood, nails and paint. Ken provides you with the following information that is relevant to the year ended 30 June 2012:

Received $78,000 from customers during the year for work performed during the year.

An amount of $7,500 is owing to Ken at 30 June 2012 for work performed during the year. Ken expects to receive this amount in July 2012.

Received a cheque for an unfranked cash dividend of $570 from an Australian resident company on 6th July 2012 where the dividend was paid on 27th June 2012 by the company.

Received interest income of $3,600 on 1 July 2012 from 12 month term deposit that was invested with the Commonwealth in Toowoomba on 1 July 2011.

Required:

Based on this information advise Ken as to what amount he should include in his assessable income for the year ended 30 June 2012?
Posted Date: 12/24/2012 3:46:41 AM | Location : Australia







Related Discussions:- Taxation law, Assignment Help, Ask Question on Taxation law, Get Answer, Expert's Help, Taxation law Discussions

Write discussion on Taxation law
Your posts are moderated
Related Questions
Acme Inc. has total liabilities of $120,000, total sales of $80,000, net income of $12,000, current assets of $90,000 and total assets of $150,000. What is the debt to equity rat

Process for Calculating gross earnings These are employee's earnings before any amount is deducted by the employer. Earnings are calculated either by a standard monthly r

Write the difference between budget & budgeting? Ans) An estimation of the revenue & expenses over a specified future period of time. A budget can be made for a person, family,

“Ledger is said to be the principal book entry and the transactions can even be directly entered into the ledger account.” Elaborate and explain why journal is necessary.

Define accounting.Briefly explain the accounting concepts which guide the accountants at recording stage

Two friends, Joe and Bill, both have carpentry skills and decide to go into business as partners together ?tting kitchen cabinets. Joe's uncle has agreed to provide £20,000 of capi

Q. Responsibility of Senior accountant? As a senior accountant Tracy will be accountable for the day-to-day management of several audit engagements during the year. She will pl

1. An accountant records a transaction when cash is paid or received under which basis of accounting?  cash  deferred  accrual  liability  2. When unearned revenue is initially rec

Flying High Inc. plans to raise $5,000,000 external financing through issuing bonds, and is considering two options: regular bonds and zero couple bonds.  The regular bonds will ha

Current Assets are $70,000, non-current assets are $150,000, current liabilities are $40,000 and long term liabilties are $30,000. What is the debt to equity ratio? 0.47 Stock h