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Manitoba ( Pty ) Ltd manufactures and sells Manita Herbal Teabags as a healthy product. The company is based in South Coast, KwaZulu - Natal,
Manitoba Pty Ltd manufactures and sells Manita Herbal Teabags as a healthy product. The company is based in South Coast, KwaZuluNatal, has a December financial year end and applies International Financial Reporting Standards. The draft results of operations for the year ended December is shown below: R Sales Rent income Dividend income Profit on sale of vehicle Cost of sales Depreciation Interest on expense Other expenses Dividends declared June Profit for the period Retained earnings: January Retained earnings: December Additional information: The deferred tax balance at the beginning of the year was Rdebit whereas the deferred tax balance at the end of the year is Rdebit Other expenses are allocated to the entitys core functions as follows: Administration: Distribution: Other: All amounts are considered material The normal tax rate is and The inclusion rate for purposes of capital gains is The following balances have been extracted from the closing balances appeared in the trial balance at December : Expenses prepaid R Rent income received in advance R Rent income received in advance at December R Income received in advance is taxed in the year of receipt. Expenses prepaid at December totalled R Expenses prepaid are deductible for tax purposes in the year in which they are paid. Other than the processing of provisional tax payments made during which totalled R no other journal entries have yet been processed regarding tax expense. The tax assessment for the year was received during August It reflected an amount of R for the assessed normal tax on taxable profit for The total tax expense in the statement of comprehensive income in was disclosed as R which was made up of current normal tax of R and deferred normal tax of R No journal entries have yet been processed to take into account any adjustments that may be necessary. A vehicle with a carrying amount of R and tax base of R was sold during Its original cost was R The base cost of this asset is R Wear and tear of R was granted as a deduction in by the tax authorities. There are no other differences between accounting profit and taxable profit other than those evident from the information given. There are no components of other comprehensive income. REQUIRED: QUESTION In accordance with IAS Income tax: a Prepare all the journal entries relating to the manufacturing of Manitoba Pty Ltd for the year ended December NB: Show calculations
Manitoba Pty Ltd manufactures and sells Manita Herbal Teabags as a healthy product. The company
is based in South Coast, KwaZuluNatal, has a December financial year end and applies International
Financial Reporting Standards.
The draft results of operations for the year ended December is shown below:
R
Sales
Rent income
Dividend income
Profit on sale of vehicle
Cost of sales
Depreciation
Interest on expense
Other expenses
Dividends declared June
Profit for the period
Retained earnings: January
Retained earnings: December
Additional information:
The deferred tax balance at the beginning of the year was Rdebit whereas the deferred
tax balance at the end of the year is Rdebit
Other expenses are allocated to the entitys core functions as follows:
Administration:
Distribution:
Other:
All amounts are considered material
The normal tax rate is and
The inclusion rate for purposes of capital gains is
The following balances have been extracted from the closing balances appeared in the trial balance
at December :
Expenses prepaid R
Rent income received in advance R
Rent income received in advance at December R
Income received in advance is taxed in the year of receipt.
Expenses prepaid at December totalled R Expenses prepaid are deductible for
tax purposes in the year in which they are paid.
Other than the processing of provisional tax payments made during which totalled R no
other journal entries have yet been processed regarding tax expense.
The tax assessment for the year was received during August It reflected an amount
of R for the assessed normal tax on taxable profit for
The total tax expense in the statement of comprehensive income in was disclosed as
R which was made up of current normal tax of R and deferred normal tax of
R No journal entries have yet been processed to take into account any adjustments
that may be necessary.
A vehicle with a carrying amount of R and tax base of R was sold during
Its original cost was R The base cost of this asset is R
Wear and tear of R was granted as a deduction in by the tax authorities.
There are no other differences between accounting profit and taxable profit other than those
evident from the information given.
There are no components of other comprehensive income.
REQUIRED:
QUESTION
In accordance with IAS Income tax:
a Prepare all the journal entries relating to the manufacturing of Manitoba Pty Ltd for the year
ended December
NB: Show calculations
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