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Profit before tax for Rum Hills Ltd for the year ended 31 Dec 2017 is as follows (IAS12) JOD Sales 2,850 Interest Revenue 60 Governmental

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Profit before tax for Rum Hills Ltd for the year ended 31 Dec 2017 is as follows (IAS12) JOD Sales 2,850 Interest Revenue 60 Governmental Grant 160 COGS (350) Entertainment Expense (160) Donations to political parties (450) Depreciation (60) Goodwill Impairment (40) Bad Debts Expense (40) Other Expenses (220) Profit before Tax 1'750 Further Information: JOD 70 allowed as a tax deduction for equipment Interest has not yet been received. Bad debts of JOD 30 have been written off during the year. Donations to political parties are non-deductible The tax rate is 35% Required: (Show all calculations) Calculate the Current Tax Liability of Rum Hills Ltd for 2017 Other Expenses (220) Profit before Tax 1750 Further Information: JOD70 allowed as a tax deduction for equipment Interest has not yet been received. Bad debts of JOD30 have been written off during the year. Donations to political parties are non-deductible The tax rate is 35% Required: (Show all calculations) a. Calculate the Current Tax Liability of Rum Hills Ltd for 2017 b. Prepare the Journal Entries, assuming that JOD 200 was paid on 30/4/2018

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