Accounting and Financial Control Department CTRL606 2022

Student Name: Group No.: Student ID:

In-Class Assignment II
Ali works for a company of the private sector at a monthly salary of L.E. 2000 (of which L.E. 180
special increment). In addition, he receives L.E. 140 per month as travel allowance, L.E. 155 per
month as social increment, L.E. 200 representation allowance. In addition, he got an annual raise of
L.E 200.
Furthermore, he was given the following In-Kind benefit during year 2020:
a) He bought an insurance policy with a total monthly premium of L.E. 300; the premium was totally
borne by Ali’s employer.

Based on the above data, answer the following Multiple choice questions from (1-5)
YOU MUST SHOW YOUR CACLULATIONS
1. What is the total basic salary?

a) 2,180
b) 2,200
c) 24,000
d) 26,400

Total Basic Salary = 2000+200 = 2000 * 12 = 26400

2. The In-kind benefit calculated for the insurance is:

a) 0
b) 300
c) 3600
d) 6000

In-kind benefit for insurance = 300 * 12 = 3600

3. What is the total Annual Revenue?

a) 30,000
b) 30,495
c) 33,540
d) 35,940

Total annual Revenue = Basic + Variable + In-kind Benefit

= 26400 + ((140 + 155 + 200) *12) + 3600
= 26400 + 5940 + 3600 = 35940
4. What is the share of the employee in the social insurance?

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Accounting and Financial Control Department CTRL606 2022

a) 0
b) 2,169
c) 3,916
d) 7,516

Share of employee in social insurance = 14% * Basic Salary + 11% * Variable Salary
We will take the 18120 because the basic salary exceed it by (26400-18120) = 8280
1) 14% * 18120 = 2537 LE

Variable Salary = total variable – work necessities allowance + excess

= 5940 - 1680 + 8280= 12540

2) 11% * 12540 = 1379 LE

Therefore, share of employee in social insurance = 2537 + 1379 = 3916 LE

5. Assume a tax base of EGP 65,000. Calculate the tax due (approximate your answer):
a) 0
b) 1,876
c) 3,250
d) 5,125

15000 * 0 = 0
15000 * 2.5 %= 375 LE
15000 * 10 %= 1500 LE
15000 * 15% = 2250 LE
5000 * 20 % = 1000 LE
Tax due = 5125 LE