Current e Deferred Tax $4,500 The accounting profit before tax for the year ended 30 June 2013 for Leely Bhd amounted to RM 18,500 and included: Depreciation - motor vehicle (25%) Depreciation equipment 20) 20,000 Doubtful debts expense 2,300 Entertainment expense (non-deductible) Proceeds on sale of equipment 19,000 Carrying amount of equipment sold 18,000 Rent revenue 16,000 Royalty revenue (non-taxable) 5,000 Annual leave expense 5,000 1,500 At 30 June 2013, the company's draft statement of financial position showed the following balances: 30 June 2013 30 June 2012 Assets RM RM Cash 11,500 Accounts receivable 9,500 12,000 14,000 Allowance for doubtful debts (3,000) (2,500) Inventories 19,000 21,500 Rent receivable 2,800 2,400 Motor vehicle 18,000 18,000 Accumulated depreciation - motor vehicle (15,750) (11,250) Equipment 100,000 130,000 Accumulated depreciation equipment (60,000) (52,000) Deferred tax asset ? 6,450) 136,100 Liabilities Accounts payable 15,655 21,500 Provision for annual leave 4,500 6,000 Deferred tax liability ? 7,600 Current tax liability 2,745 37,845 Additional Information 1. The company can claim a deduction of RM15,000 (15%) for depreciation on equipment, but the motor vehicle is fully depreciated for tax purposes. 2. The equipment sold during the year had been purchased for RM30,000 2 years before the date of sale. 3. The company income tax rate is 30% Required: 1. Determine the balance of any current and deferred tax assets and liabilities for Leely Bhd as at 30 June 2013. Show all workings 2. Prepare any necessary journal entires. Current e Deferred Tax $4,500 The accounting profit before tax for the year ended 30 June 2013 for Leely Bhd amounted to RM 18,500 and included: Depreciation - motor vehicle (25%) Depreciation equipment 20) 20,000 Doubtful debts expense 2,300 Entertainment expense (non-deductible) Proceeds on sale of equipment 19,000 Carrying amount of equipment sold 18,000 Rent revenue 16,000 Royalty revenue (non-taxable) 5,000 Annual leave expense 5,000 1,500 At 30 June 2013, the company's draft statement of financial position showed the following balances: 30 June 2013 30 June 2012 Assets RM RM Cash 11,500 Accounts receivable 9,500 12,000 14,000 Allowance for doubtful debts (3,000) (2,500) Inventories 19,000 21,500 Rent receivable 2,800 2,400 Motor vehicle 18,000 18,000 Accumulated depreciation - motor vehicle (15,750) (11,250) Equipment 100,000 130,000 Accumulated depreciation equipment (60,000) (52,000) Deferred tax asset ? 6,450) 136,100 Liabilities Accounts payable 15,655 21,500 Provision for annual leave 4,500 6,000 Deferred tax liability ? 7,600 Current tax liability 2,745 37,845 Additional Information 1. The company can claim a deduction of RM15,000 (15%) for depreciation on equipment, but the motor vehicle is fully depreciated for tax purposes. 2. The equipment sold during the year had been purchased for RM30,000 2 years before the date of sale. 3. The company income tax rate is 30% Required: 1. Determine the balance of any current and deferred tax assets and liabilities for Leely Bhd as at 30 June 2013. Show all workings 2. Prepare any necessary journal entires
