For the year ending 31st December 20X3 20X4 20X5 Accounting profit (PBT) 80,000
ID: 2545024 • Letter: F
Question
For the year ending 31st December 20X3 20X4 20X5 Accounting profit (PBT) 80,000 130,000 100,000 Depreciation 7,000 12,000 14,000 Depreciation loss (taxation) 8,000 14,000 15,000 Corporation Tax Rate 30% 30% 30% Tax Paid pertaining to previous year Nil 28,000 45,000 Transfer to/(from) deferred tax 8,000 6,000 (6,000) credit credit debit *assume the amount of "tansfer to/(from) deferred tax is calculated correctly after taking into account all the necessary adjustments. Required: Show the Provision for taxation account, Deferred Tax account, extract of the income statement and extract of the statement of financial positionfor the three years ending 31 December 20X3, 20X4 and 20X5. For the year ending 31st December 20X3 20X4 20X5 Accounting profit (PBT) 80,000 130,000 100,000 Depreciation 7,000 12,000 14,000 Depreciation loss (taxation) 8,000 14,000 15,000 Corporation Tax Rate 30% 30% 30% Tax Paid pertaining to previous year Nil 28,000 45,000 Transfer to/(from) deferred tax 8,000 6,000 (6,000) credit credit debit *assume the amount of "tansfer to/(from) deferred tax is calculated correctly after taking into account all the necessary adjustments. Required: Show the Provision for taxation account, Deferred Tax account, extract of the income statement and extract of the statement of financial positionfor the three years ending 31 December 20X3, 20X4 and 20X5.Explanation / Answer
Calculation of Tax 2,013 2,014 2,015 Accounting Profit 80,000 1,30,000 1,00,000 Add: Dep 7,000 12,000 14,000 Less: Dep (Tax) 8,000 14,000 15,000 Taxable Profit 79,000 1,28,000 99,000 Corp Tax Rate 30% 30% 30% Tax 23,700 38,400 29,700 Provision for Tax 2013 By Income Tax 23,700 To balance C/F 23700 23700 23700 To Cash 28000 By Balance B/F 23700 By Income Tax 38,400 To balance C/F 34,100 62,100 62,100 To Cash 45000 By Balance B/F 34,100 By Income Tax 29,700 To balance C/F 18,800 63,800 63,800 Deffered Tax By Income Tax 8000 To balance C/F 8000 8000 8000 By Balance B/F 8000 By Income Tax 6000 To balance C/F 14000 14000 14000 By Balance B/F 14000 To Income Tax 6000 To balance C/F 8000 14000 14000 Income Statement 2,013 2,014 2,015 Accounting Profit 80,000 1,30,000 1,00,000 Less-Income Tax 23,700 38,400 29,700 Deffered Tax 8,000 6,000 -6,000 Profit After Tax 48,300 85,600 76,300 Balance Sheet - 2013 Liability Amt Asset Amt Profit 48,300 Privison For Tax 23700 Deffered Tax 8000 Balance Sheet - 2014 Liability Amt Asset Amt Profit 1,33,900 Privison For Tax 34100 Deffered Tax 16000 Balance Sheet - 2015 Liability Amt Asset Amt Profit 2,10,200 Privison For Tax 18800 Deffered Tax 8000