Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

TPG's draft statement of financial position at 30 June 2020 showed the following assets and liabilities. Assets 30/06/2020 Inventory 10,500 Accounts Receivable 34,000 Less Allowance

image text in transcribed

TPG's draft statement of financial position at 30 June 2020 showed the following assets and liabilities. Assets 30/06/2020 Inventory 10,500 Accounts Receivable 34,000 Less Allowance for doubtful debts 6,000 28,000 Buildings (cost) 350,000 Less Accumulated Depreciation (175,000) 175,000 Plant (cost) 225,000 Less Accumulated Depreciation (67,500) 157,500 Deferred Tax Asset (Op balance) 48,600 419,600 Liabilities Accounts payable 46,700 Provision for annual leave 18,200 Deferred Tax Liability (Op Bal) 6,000 70,900 Additional information: As per accounting policy, the company depreciates plant at 15% p.a. on straight line basis. Tax depreciation for plant is 20% (Assume Plant was acquired 3 years back). The company depreciates building for accounting purposes at 5% p.a. on straight line basis. Depreciation on buildings is not deductible for tax purposes Required: Complete the deferred tax worksheet and prepare the journal entries to adjust deferred tax accounts

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Gail Fayerman

1st Canadian Edition

9781118774113, 1118774116, 111803791X, 978-1118037911

More Books

Students also viewed these Accounting questions

Question

What is overfitting? Why is it so important to watch out for?

Answered: 1 week ago

Question

Discuss the determinants of direct financial compensation.

Answered: 1 week ago