Corporation tax for the tax years 2014, 2015, and 2016 was 40% and income tax for each year was 20%.
(A) Tilt Ltd’s draft statement of profit or loss for the year ending 31 December 2015 shows a net trading profit from operations of £600,000. This figure is before taking into account (B) and (C1) and (C2).
(B) Loan-note interest paid on 5 December 2015 (gross) was £100,000. Ignore accruals.
(C1) Fixed rate interest received is £60,000 (net). Date received is 9 November 2015. Ignore accruals.
(C2) A dividend of £1,000 was received from Diamond Ltd on 1 October.
(D) Depreciation was £90,000. This compares with £130,000 capital allowances given by Revenue and Customs. There is to be full provision for all timing differences for 2015.
(E) The income tax bill (net) in respect of (B) and (C1) was paid on 19 December 2015.
(F) Preference dividend paid on 6 July 2015 £16,000.
(G) Ordinary interim dividend paid 8 August 2015 £90,000.
(H) Proposed final ordinary dividend for 2015 (paid in 2016) was £150,000.
(I) Proposed final ordinary dividend for 2014 (paid 10 March 2015) was £120,000.
(J) There was a credit balance on the deferred taxation account at 31 December 2014 of £85,000.
(K) Tax for 2014 had been provided for at £140,000 but was finally agreed at £136,000 (paid on 6 October 2015).
(L) Corporation tax for 2015 is estimated to be £170,000.
You are required to enter up the following accounts for the year ended 31 December 2015 for Tilt Ltd: Deferred tax; Income tax; Interest receivable; Loan-note interest; Investment income; Corporation tax; Preference dividends; Ordinary dividends; Statement of profit or loss extract. Also prepare the relevant statement of financial position extracts as at 31 December 2015.