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Donkor Ltd Ghanaian based manufacturer of calculators and it prepares financial statements in accordance with International Accounting Standards every year. On 31 December 2017, the
Donkor Ltd Ghanaian based manufacturer of calculators and it prepares financial statements in accordance with International Accounting Standards every year. On 31 December 2017, the taxation liability account in its books showed a credit balance of GH11,500 after paying the 2016 liability. The estimated liability for 2017 is GH34,000 and no entry has yet been made to record this.
Required:
Explain the appropriate accounting treatment of the above transaction for the year end 31 December 2017.
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