The following information relates to Deferred plc:
● EBITDA (earnings before interest, tax, depreciation and amortisation) for year ended 31.12.20X1 is £300,000
● No interest payable in 20X1
● No amortisation
● Equipment cost £100,000 at 1.1.20X1
● Depreciation rate is 10% straight line
● Nil scrap value
● Tax rate is 20%
● Capital allowance is 25% on reducing balance basis.
Required:
Calculate:
(a) Deferred tax;
(b) Statement of income entries;
(c) Statement of financial position entries.