Introduction to Company Accounting

COMPANY
ACCOUNTING

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Question 1. Tax effect accounting...............................................................................................3
Question 2. Business combination...............................................................................................5
Question 3. Consolidation............................................................................................................7
Question 4 NCI..........................................................................................................................10
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Accounting in a company is very essential because there are wide range of financial
transactions which are done due to various activities (Hsu and Pourjalali, 2015). In the absence
of proper accounting, this can be difficult for companies to manage and track their financial
transaction. The project report covers about various accounting aspects and calculations. Under
the report calculation regarding to effect of tax on accounting, business combination,
consolidation and non controlling assets is done.
MAIN BODY
Question 1. Tax effect accounting.
(a) Current tax liability – This can be defined as an amount which is owed by individuals to a tax
authority. Herein, below calculation of deferred tax liability is mentioned which is as follows:
Deferred tax liability = Income tax expenditure – Tax payable + Deferred tax assets
Question 1. (a)
Current tax liability
Income tax
expenditure
– Tax
payable +
Deferred tax
assets
293000-
91760+2250
000
Current tax liability 2451240
Working Note
Income tax expenses : 293000

Depreciation 260000
Accumulated depreciation 33000
Tax payable : 91760
Tax loss 29630
Quarterly tax liability (31750+30380) 62130
Deferred tax assets : 2250000
Tax on land (75000*30%) 2250000
(b)
Deferred tax assets and liabilities
2019 2018
Assets
Cash 80000 85000
Inventory 170000 155000
Interest receivables 40000 20000
Trade receivables 500000 480000
Provision for bad debts -55000 -40000
Other supplies 25000 22000
Land 750000 650000
Building 300000 300000
Accumulated depreciation -148000 -140000
Motor vehicles 165000 165000
Accumulated depreciation -132000 -115500
Goodwill 70000 70000
Deferred tax assets : -73000 40500
1765000 1692000
Liabilities