both questions please Q.2: In tax-effect accounting, creation of temporary differences between the carrying amount and the tax base for assets and liabilities leads to the establishment of deferred tax assets and liabilities in the accounting records. Classify the following temporary differences that create either: deferred tax assets; deferred tax liabilities Provisions: Prepaid expenses; Accrued expenses; Accrued revenue; Prepaid revenue; Tax losses Accounting depreciation Taxation; Expenses capitalized and amortized; (4 Marks) Deferred Tax Assets prepaid expenses Accrued revenue Tax Losses Expenses capitalized and anotized Q.3: Profit before tax for Rum Ltd for the year ended 31 Dec 2017 is as follows (IAS12) Item Sales Interest Revenue G Governmental Grant COGS (350) & Entertainment Expense (160) Donations to political parties (450) Depreciation (60) @Goodwill Impairment Bad Debts Expense Other Expenses Profit before Tax Patit befor Tea K $ 2,610 60 1510 156 (40) (40) (220) 160- Deferred Tax Liabilities Provisions ACCTRed p Prepaid cev. Accounting Dep Further Information: $70 allowed as a tax deduction for equipment. Interest has not yet been received. Bad debts of $30 have been written off during the year. Donations to political parties are non-deductible The tax rate is 35% (6 Marks) Required: (Show all calculations) a. Calculate the Current Tax Liability of Rum Ltd for 2017 b. Prepare the Journal Entries, assuming that $100 was paid on 15/4/2018 3

Q.2: In tax-erreet accounting. creation or temporary differences between the the tax base for assets and habilities leads to the cecounting records, Claxsify the follow the evtablishmeat between the carrying amount and defered tax assers; decterred Classify the foll hat hablines Provisionsy-Prepard chperter Aceourting depreciations Acerued expome Dafn. Sales Interest Reverue Govermmental Grant COGS G. Entertainment Expense Domations fo porpense (350) Depreciation political parties (450) Ecpreciation Bad Debis Expense Other Expenses Profit before Tax .Patik...hefor. zos L'sto (60) (40) (40) (20) 1510 15b . sovernmestal grot. 2.610$ Fe year ended 31 Dee 2017 is as follows (IAS12) Further Information; - S70 allowed as a tax deduction for equipment. - Interest has not yet been received. - Donations to political parties are non off during the year. - The tax rate is 35% Required: (Show all calculations) b. Calculate the Current Tax Liability of Rum Litd for 2017 on 15/4/2018 ournal Entries, assuming that S100 was pafd ( 6 Marks) (6 Marks)