Prepare the franking account for Piddilly Pty Ltd.

The transactions are to be completed on the account below; withfull workings of any penalties or other taxesshown underneath the account as per organisational policy and procedures and in accordance with accounting principles and practices(see Appendix 1).

Notes:

Piddilly Pty Ltd are not a Base Rate Entity taxpayer.

The closing balance of the previous year was Debit 5,000.

Date

Details

Debit

Credit

Balance

July 1

Opening balance

Nil

31

Franking deficit tax paid $5000

August 8

Land tax paid $3,200

14

PAYG Instalment $13,900

22

Foreign dividend received,

Overseas tax $400 paid

Sept 24

Fully franked dividend received $700, franking

Credit $300

Oct4

Fully franked dividend paid

$32,000

11

Refund of income tax referring to a previous ATO assessment $5,100

21

Partly franked dividend received (80%) $420

28

PAYG Instalment $13,900

Jan6

Refund of GST $2,000

Feb 23

PAYG Instalment $13,900

Mar 29

Paid rates to local council $2,300

Apr 12

Paid balance of income tax due for previous year $370

May24

Following an income tax audit, we are required to pay $500 tax and interest of $400

31

PAYG Instalment $13,900

Jun4

80% franked dividend paid

$120,000

Closing balance