5. The following information is extracted from the Statement of Financial Position of Jati Diri Bhd. as at 31 December 2019: RM 000 Now-Curreness Plant (a netbook value) Development costs 3 500 8000 100 Current Asset Inventory Trade receivables Interest receivables Cash bank 200 600 Total Assets 14 800 Financed by Equity Share capital Retained camings 4000 1750 $ 750 Non-Current Liabilitas Trade payables Loan Deferred tax lubility 2M 4400 200 7560 Crew Lates Low Provision for warranties Deferred tax liability 150 Total Equity and Liabilities 14 800 Additional information: Income tax rate has been reduced from 28% in the previous year to 25% in the current year. in the carrying amount of trade receivables of RM2.6 million is after providing for general provision for bad debts amounting to RM300 000, Tax rules allow only specific provision for bad debts. cm Interest receivables is accrued interest on investment. Under tax rules, interest on investment is taxable only upon receipt Development expenditure of RM3.5 million was capitalized in accordance with MFRS 138 but can be written-off under tax rule. There was no amortisation during the year. (Capital allowance given to the plant for tax purposes is RM4 million. The carrying amount of the plant of RM4.5 million is after providing for accumulated depreciation of RM3 million (v) The company provides for warranties on goods sold but the tax rule allows only when reimbursements are made (-u) The balance in the deferred tax liability account is the carried forward closing balances from the prior year. Required: (a) Prepare a table showing the carrying amounts, tax base and temporary differences for each of the item above as at 31 December 2019. (b) Calculate the amount of tax expense as charged in the Statement of Profit or Loss and the amount disclosed in the deferred tax liability in the Statement of Financial Position as at 31 December 2018. Show the journal entry to account for the tax expenses and prepare the deferred tax account. 5. The following information is extracted from the Statement of Financial Position of Jati Diri Bhd. as at 31 December 2019: RM 000 Now-Curreness Plant (a netbook value) Development costs 3 500 8000 100 Current Asset Inventory Trade receivables Interest receivables Cash bank 200 600 Total Assets 14 800 Financed by Equity Share capital Retained camings 4000 1750 $ 750 Non-Current Liabilitas Trade payables Loan Deferred tax lubility 2M 4400 200 7560 Crew Lates Low Provision for warranties Deferred tax liability 150 Total Equity and Liabilities 14 800 Additional information: Income tax rate has been reduced from 28% in the previous year to 25% in the current year. in the carrying amount of trade receivables of RM2.6 million is after providing for general provision for bad debts amounting to RM300 000, Tax rules allow only specific provision for bad debts. cm Interest receivables is accrued interest on investment. Under tax rules, interest on investment is taxable only upon receipt Development expenditure of RM3.5 million was capitalized in accordance with MFRS 138 but can be written-off under tax rule. There was no amortisation during the year. (Capital allowance given to the plant for tax purposes is RM4 million. The carrying amount of the plant of RM4.5 million is after providing for accumulated depreciation of RM3 million (v) The company provides for warranties on goods sold but the tax rule allows only when reimbursements are made (-u) The balance in the deferred tax liability account is the carried forward closing balances from the prior year. Required: (a) Prepare a table showing the carrying amounts, tax base and temporary differences for each of the item above as at 31 December 2019. (b) Calculate the amount of tax expense as charged in the Statement of Profit or Loss and the amount disclosed in the deferred tax liability in the Statement of Financial Position as at 31 December 2018. Show the journal entry to account for the tax expenses and prepare the deferred tax account
