Sept.

2:

Paid Kshs. 960,000 to Dr. Greg William, an American, who had come to design the company’s website.

4:

Received architect’s certificates amounting to Kshs. 3,200,000 for the construction of an extension to the factory building which had been completed. Out of this amount, Kshs. 1,000,000 represents retention money.

5:

Purchased goods on credit from KLM Ltd. worth Kshs. 1,360,000.

6:

Purchased stationery for use in the business on credit from Text Book Centre worth Kshs. 500,540.

6:

Sold goods worth Kshs. 2,650,000 on credit to Options (K) Ltd.

7:

Sold goods to Zim Bank (K) Ltd. for Kshs. 1,970,200

9:

Paid Maersk Shipping Line Kshs. 350,000 for transporting goods purchased by Zim Bank (K) Ltd.

11:

Options (K) Ltd returned goods worth Kshs. 300,000 due to some major defects.

11:

Sold goods worth Kshs. 865,000 on credit to Homa Bay Wholesalers.

12:

Returned defective office stationery, which had cost Kshs. 50,800 to Text Book Centre.

14:

Sold goods for Kshs. 1,220,000 to Rwanda Miners Ltd. a company based in Rwanda.

16:

Goods worth Kshs. 200,000 were stolen while in transit to Rwanda.

18:

Granted Kshs. 20,000 allowance to Rwanda Miner Ltd. for some minor defects on some items.

18:

Agreed to cancel the account received from Zim Bank (K) Ltd. in exchange for services rendered by them to the company in the Coast Province.

20:

Sold goods for cash amounting to Kshs. 2,734,000.

23:

Homa Bay Wholesalers was declared insolvent by the High court and a winding up order issued.

30:

Telephone and electricity bills for the month were received. The VAT on the telephone and electricity bills was Kshs. 300,000 and Kshs. 17,500 respectively.

compute tax liability