Question
The Statement of Financial Position of Oliver Ltd as at 30 June 2021 showed the following assets and liabilities. 2021 Assets $ Cash 3,000 Accounts
The Statement of Financial Position of Oliver Ltd as at 30 June 2021 showed the following assets and liabilities.
| 2021 | |
| Assets | $ |
| Cash | 3,000 |
| Accounts receivables | 85,000 |
| Allowance for doubtful debts | (4,000) |
| Inventory | 9,500 |
| Prepaid insurance | 3,600 |
| Plant | 60,000 |
| Accumulated Depreciation - Plant | (15,000) |
| Deferred Tax Asset (at 30/06/2020: $1,270) | ? |
|
|
|
| Liabilities |
|
| Accounts Payable | 75,000 |
| Provision for Long service leave | 2,000 |
| Revenue received in advance | 3,000 |
| Deferred Tax Liability (at 30/06/2020: $800) | ? |
Additional information
a. Accumulated depreciation of plant for tax purposes was $20,000 as at 30 June 2021.
b. The tax rate is 30%
Required
Prepare the deferred tax worksheet and journal entries to adjust deferred tax accounts as at 30 June 2021.
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Public Sector Accounting And Finance
Authors: Prof Stephen Sunday Sharang Ph.D.
1st Edition
979-8639273353
