To calculate Mr. Kusakye's total allowances, we need to sum up the amounts he was allowed free of tax for each category. Let's calculate it step by step:
Personal allowance: GH¢ 1200.00
Wife allowance: GH¢ 300.00
Children allowance (for 6 children): GH¢ 250.00 × 4 = GH¢ 1000.00 (since the maximum allowance for children is 4)
Dependent relative allowance: GH¢ 400.00
Insurance allowance: GH¢ 250.00
Now, let's add up all the allowances:
Total allowances = Personal allowance + Wife allowance + Children allowance + Dependent relative allowance + Insurance allowance
Total allowances = GH¢ 1200.00 + GH¢ 300.00 + GH¢ 1000.00 + GH¢ 400.00 + GH¢ 250.00
Calculating the sum:
Total allowances = GH¢ 3150.00
Therefore, Mr. Kusakye's total allowances amount to GH¢ 3150.00.