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Question 1 (10 marks) The following information was extracted from the records of Terra Ltd. for the year ended 30 June 2024. Accounts receivable
Question 1 (10 marks) The following information was extracted from the records of Terra Ltd. for the year ended 30 June 2024. Accounts receivable Accumulated depreciation-motor vehicles Allowance for doubtful debts Bad debts expense Deferred tax asset Deferred tax liability Insurance Expense Interest payable Motor vehicles Prepaid insurance Rent receivable Rent revenue Terra LTD as 30 June 2024 90,000 (44,000) (18,000) 20,000 10,750 5,390 12,800 7,000 220,000 24,000 3,400 5,000 Additional information Estimated useful-life for tax purposes Estimated useful-life for accounting 10 years 15 years Rent received 2,000 Opening balance for prepaid insurance 1800 Opening balance for the allowance for doubtful debts 8,000 Interest expenses 3,000 Tax rate 30% Profit before tax 341,200
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