4 .You are operating a large scale bookshop in the center of your town.

You offer both cash and

credit sales.

(a) Formulate guidelines for selling goods on credit. (07marks)

(b) Make a radio advert to publicize your products. (05marks)

(c) Develop business card for a sales manager. (06marks)

(d) Prepare a plan for taking an insurance policy. (07marks)

5. (a) OKOT PATEL is a Kenyan who works in Uganda. He earns a consolidated financial reward
which includes monthly salary of Ugshs 8,035,000,transport allowance of shs 175,000 and medical
allowance of shs 245,000.

Given a tax rate for non residents below;

Monthly emoluments TAX RATE (BRACKET)

NOT EXCEEDING Shs.335,000 10%
EXCEEDING Shs335,000 BUT NOT EXCEEDING Shs335000 plus 20 of the amount by which
Shs 410,000
chargeable income exceeds Ushs 335,000
EXCEEDING SHS 410,000 (a) Shs 48500 plus 30% of the by which
chargeable income exceeds Ugshs 410,000.
(b) Where the chargeable income of an
individual exceeds Ugshs 10,000,000 an
additional 10% charged on the amount by
which chargeable income exceeds
10,000,000
Compute for the Pay As You Earn to be withheld and remitted by the Employer of Uganda Revenue
Authority. (06 marks)

(b) LOYALEE PROPERTIES LIMITED earns Shs 50,000,000 from its commercial building located in
Wakiso. Shs 10 million from this apartment it lets ti out to FOODRITE UGANDA and Shs 18,000,000
from its building that houses a LETS SAVE COMMUNITY SACCO, Out of this Shs 9,000,000 was
incurred as interest on mortgage from the bank and Shs 20,000,000 as expenses in generating the
annual rental income . Question: Calculate the rental tax payable.(9marks)

d. Walugembe owns two business, One is a dairy shop located in Mbarara and while another is a
food store located in Entebe. Every year he derives 58 millions from the shop in Mbarara and 69
millions from the store in Entebbe. Walugembe is not good at keeping records but has a counter
book where he records daily sales.

Given the schedule below for the computation of “presumptive” income tax for small
business;
 GROSS TURNOVER PER ANNUM WITH RECORDS WITHOUT
RECORDS

Not exceeding UGX10 millions NIL NIL

Exceeding UGX 10 millions 0.4% of annual turnover in excess of 10 UGX 80,000

millions

Exceeding UGX30 millions but does UGX 80,000 plus 0.5% of the annual UGX 200,000
not exceed UGX50 millions turnover in excess of 30 millions

Exceeding UGX 50 millions but does UGX 180,000 plus 0.6% of annual UGX 400,000
not exceed UGX 80 millions turnover in excess of UGX 50 millions
Exceeding UGX 80 millions but does UGX 360,000 plus 0.7% of annual UGX 900,000
not exceed UGX 150 millions turnover in excess in excess of UGX 80
millions
Question: Calculate Walugembe’s tax payable every year. (4 marks)

(c) Advice the executive Director of Uganda Revenue Authority on ways tax compliance in Uganda.
(6 marks

6. You are a general manager of a business denying in the manufacture of liquid soap.

a) Propose rules and regulations for ensuring proper code of conduct for your employees.

(7 marks)

b) Write a debit note to be used when correcting in undercharge on customer’s invoice. (06
marks)
c) Prepare guidelines to ensure proper Inventory managements (06 marks)
d) Write termination letter to an Incompetent employee. (06 marks)