Question
QUESTION 1 (18 marks) The statement of financial position of Sallyi Ltd at 30 June 2020 showed the following assets and liabilities. Assets 2020 ($)
QUESTION 1 (18 marks)
The statement of financial position of Sallyi Ltd at 30 June 2020 showed the following assets and liabilities.
Assets | 2020 ($) | 2019($) |
Cash | 80 000 | 85 000 |
Inventories | 170 000 | 155 000 |
Accounts Receivables | 520 000 | 480 000 |
Allowance for Doubtful Debts | (60 000) | (40 000) |
Plant | 500 000 | 500 000 |
Accumulated depreciation plant | (260 000) | (210 000) |
Deferred Tax Asset | ? | 35 500 |
Liabilities |
|
|
Accounts payable | 290 000 | 260 000 |
Provision for long service leave | 48 500 | 45 000 |
Rent Received in advance | 22 500 | 20 000 |
Deferred Tax Liability | ? | 0 |
Additional information
- Accumulated depreciation of plant for tax purposes was $330 000 at 30 June 2019, and depreciation for tax purposes for the year ended 30 June 2020 amounted to $80 000.
- The tax rate is 30%.
Required (show all workings):
Prepare Sallyis deferred tax worksheet/workings at 30 June 2020 (showing only relevant assets and liabilities), and prepare the deferred tax journal entry required on 30 June 2020. Narration is not required. (Total - 18 marks)
(Australia country)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started