Question

Mr. Kusakye has a wife with six Children and his total income in 2019 was GH¢ 8,500.00. He was allowed the following free of tax Personal - GHC 1200.00 Wife - GH¢ 300.00 each child - GHC 250.00 for a maximum of 4 Dependent relative - 400.00 Insurance - 250.00 The rest was taxed at 10% calculate: his total allowances​

Answer 1

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.