In the earlier times, the transaction expenses that are related to a combination of a business (for instance the accounting and the legal fees for the due persistence work) have been capitalized along with the acquisition cost thereby creating a part of the calculation within the goodwill (Dickinson et al., 2016).
Running head: COMPANY ACCOUNTINGCompany AccountingName of the Student:Name of the University:Author’s Note:
COMPANY ACCOUNTING1Table of ContentsAnswer to Question 1:.....................................................................................................................3Requirement 1:.............................................................................................................................3Requirement 2:.............................................................................................................................4Requirement 3:.............................................................................................................................5Answer to Question 2:.....................................................................................................................7PART A:......................................................................................................................................7Requirement 1:.........................................................................................................................7Requirement 2:.........................................................................................................................8Requirement 3:.........................................................................................................................9PART B:......................................................................................................................................9Answer to Question 3:...................................................................................................................11Requirement 1:...........................................................................................................................11Requirement 2 & 3:...................................................................................................................12Requirement 4:...........................................................................................................................13Requirement 5:...........................................................................................................................13Requirement 6:...........................................................................................................................14Answer to Question 4:...................................................................................................................15Requirement 1:...........................................................................................................................15Requirement 2:...........................................................................................................................16
COMPANY ACCOUNTING2Requirement 3:...........................................................................................................................17Requirement 4:...........................................................................................................................18Reference List................................................................................................................................21
COMPANY ACCOUNTING3Answer to Question 1:Requirement 1:ParticularsAmountAmountAccounting profit before tax$3,20,000 Add:Depreciation Expense for accounting purpose$53,333 Amortisation of Development Cost$30,000 Rent Received in Cash$27,000 Insurance Expense$24,000 Entertainment Expense$14,220 Fines & Penalties7200Legal Fees$4,200 Restructuring Expenses$25,000Bad Debts Expense$16,000Employee benefit Expense$54,000Goodwill Impairment Losses1000$2,55,953 $5,75,953 Less:Depreciation Expense for Tax Purpose$40,000Development Cost$1,50,000Rent Revenue$25,000 Insurance PAid$29,000Doubtful Debts Expesne$12,000 Employee Benefit Expense paid$58,000 Royalty Revenue3500$3,17,500 Taxable income$2,58,453 Net Taxable Income$2,58,453 Tax on taxable income @30%$77,536 Less: Tax Paid in Advance$27,590Current Tax Liability$49,946 Worksheet for Curret Tax Liability/(Refundable):
COMPANY ACCOUNTING4Requirement 2:ParticularsCarrying AmountTax BaseTaxable Temp’y DiffsDeductible Temp’y Diffs$$$$AssetsCash$42,000 $42,000 Accounts Receivables$1,90,000 $1,90,000 Allowance for Doubtful Debts($26,000)$0 $26,000 Inventories$1,42,000 $1,42,000 Prepaid Insurance$30,000 $30,000 Rent Receivable$3,500 $3,500 Development Costs$1,20,000 $1,20,000 Accumulated Development Cost($30,000)$30,000 Plant$2,00,000 $2,00,000 Accum. Depr.- Plant($1,13,250)($1,60,000)($30,000)Goodwill$10,000 $10,000 Accum. Impairment Loss($2,000)$2,000 LiabilitiesAccounts Payables$1,11,500 $1,11,500 Prov. For Employee benefit$61,000 $61,000 Provision for restructuring$25,000 $25,000 Borrwoings$2,10,000 $2,10,000 Total Temporary differences$33,500 $1,14,000 Deferred tax liability (30%)$10,050 Deferred tax asset (30%)$34,200 Deferred Tax Worksheet:
COMPANY ACCOUNTING5Requirement 3:Dr.Cr.DateAmountAmount30-06-2018Income Tax Expense A/c.Dr.$77,536To,Current Tax Liability A/c.$49,946To,Advance Tax Paid A/c.$27,590Deferred Tax Assets A/c.Dr.$34,200To,Deferred Tax Liability A/c.$10,050To,Income Tax expenses A/c.$24,150Profit & loss A/c.$1,01,686To,Income Tax expenses A/c.$1,01,686(Being deferred tax assets and deferred tax liabilities recorded)Particulars(Being Income tax expenses adjusterd with advance tax paid and current tax liability recorded)(Being income tax expense transferred to P/L A/c.)Workings:
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Corporate Accounting and Reporting - AASB 13 Fair Value Measurementlg...
|9
|1528
|291
Answer about Accounting 2022lg...
|13
|2322
|23
Company Accounting Answer Question 2022lg...
|7
|1374
|16
CORPORATE ACCOUNTING AND REPORTING THEORYlg...
|9
|1487
|22
Financial Reporting and Disclosure 2022lg...
|22
|7011
|25
Jasmine and the Income Tax Assessment Act 1997lg...