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For the reporting period ending 3 1 December 2 0 2 3 , Spider Limited had a profit before tax of $ 3 6 1
For the reporting period ending December Spider Limited had a profit before tax of $ In arriving at this figure the following items were correctly accounted for.
An item of plant purchased on January for a cost of $ is shown on the statement of financial position. For accounting purposes the item of plant has a useful life of five years and no expected residual value. For taxation purposes the Inland Revenue Department permits the plant to be depreciated on the straight line basis over four years.
On December after depreciation for the year had been charged the item of plant considered above was revalued to $ At revaluation, the plant was reestimated as having a useful life of a further eight years from the date of revaluation.
No items of property, plant and equipment have been disposed of during the year.
Spider Limited made a donation of $ to Project Johna. This donation is not permitted as a deduction for taxation purposes.
Unearned sales revenue of $ had been received in advance for the reporting period. This amount is taxable in the hands of Spider Limited in the year of receipt.
Goods worth $ had been sold on credit. At reporting date this amount is still to be received and has been included in taxable income.
An allowance for doubtful debts of per cent of debtors outstanding at reporting date was made by Spider Limited. Only bad debts written off will be permitted as a deduction for taxation purposes. The allowance for doubtful debts for was $
Accrued wages amount to $ The amount of the accrual will only be deductible for tax purposes when paid.
The tax rate is thirty per cent. Spider Limited uses tax effect accounting. No information other than that which can be determined from the above information is relevant.
Required:
Calculate the tax payable for the reporting period ending December
Calculate the balance in the deferred tax ledger accounts at December
Prepare the journal entries to account for current tax for the reporting period ending December
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