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Question 3 Tax Effect Accounting 2 5 Marks The following amounts have been extracted from the Statement of Financial Position of Niugini Ltd as at
Question Tax Effect Accounting Marks The following amounts have been extracted from the Statement of Financial Position of Niugini Ltd as at December prior to deferred tax adjustments. tabletableTemporarydifferencetableCarryingamounttableTaxbaseTaxable,DeductibleAssetsAccounts receivable,Less: Provision,InventoriesAccrued revenue,InvestmentsGoodwillLoantableProperty plant andequipmenttableLess: AccumulateddepreciationLiabilitiesAccounts payable,Current tax payable,Accrued expenses salariestableRevenue received inadvanceDeferred tax liability,Borrowings The above information should be read in conjunction with the following information. i Accrued revenue of is in two parts: a Interest receivable which will be taxed upon receipt b A refund of tax fine which will be assessable when received. ii Accrued expenses salaries: a tax deduction will be claimed when an actual payment of cash is made. iii Revenue received in advance is rent that was taxed on receipt. iv Accumulated tax deductions for depreciation are K as at December Required: a Complete the worksheet for calculation of deferred tax balances. Marks Note: Students are advised to answer this question on the question paper b Prepare journal entries to record deferred tax including any entry to offset balances. Marks Notes: plesse provide the solution not steps on how to get the answers.
Question
Tax Effect Accounting
Marks
The following amounts have been extracted from the Statement of Financial Position of Niugini Ltd as at December prior to deferred tax adjustments.
tabletableTemporarydifferencetableCarryingamounttableTaxbaseTaxable,DeductibleAssetsAccounts receivable,Less: Provision,InventoriesAccrued revenue,InvestmentsGoodwillLoantableProperty plant andequipmenttableLess: AccumulateddepreciationLiabilitiesAccounts payable,Current tax payable,Accrued expenses salariestableRevenue received inadvanceDeferred tax liability,Borrowings
The above information should be read in conjunction with the following information.
i Accrued revenue of is in two parts:
a Interest receivable which will be taxed upon receipt
b A refund of tax fine which will be assessable when received.
ii Accrued expenses salaries: a tax deduction will be claimed when an actual payment of cash is made.
iii Revenue received in advance is rent that was taxed on receipt.
iv Accumulated tax deductions for depreciation are K as at December
Required:
a Complete the worksheet for calculation of deferred tax balances.
Marks
Note: Students are advised to answer this question on the question paper
b Prepare journal entries to record deferred tax including any entry to offset balances.
Marks
Notes: plesse provide the solution not steps on how to get the answers.
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