Company Accounting: Solved Assignments and Essays

Running head: COMPANY ACCOUTNING
Company Accounting
Name of the Student:
Name of the University:
Authors Note:

COMPANY ACCOUTNING
1
Contents
Answer 1:.........................................................................................................................................2
Answer 2:.........................................................................................................................................7
Part A:........................................................................................................................................11
Part B:........................................................................................................................................11
Answer 3:.......................................................................................................................................13
Answer 4:.......................................................................................................................................24
References:....................................................................................................................................37

COMPANY ACCOUTNING
2
Answer 1:
Question 1:
Requirement 1:
Current tax worksheet
Current tax liability
Particulars Amount ($) Amount
($)
Before tax profit as per Comprehensive income statement 400,493.
00
Add/ (Less): Items of revenue and expenditures
Depreciation on:
Plant 50,000.00
Motor vehicles 55,000.00
Building 8,000.00
Entertainment expenses is not allowed as deduction 18,000.00
Revaluation profit on land is not subjected to income tax
Government grant is not treated as income for start up (10,000.00)
Office supplies expenses and purchases are same at $15,000

COMPANY ACCOUTNING
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Depreciation allowed for tax purposes on:
Plant (75,000.00)
Motor vehicles (33,000.00)
Bad debt expenses is allowed as deduction
Interest revenue is taxable hence, no adjustment is necessary
Rent revenue is taxable hence, no adjustment is needed
Employee benefit expenses is allowed as deduction Assuming it has been paid
Net increase / (decrease) in profit 13,000.
00
Taxable profit 413,493.
00
Current tax liability @30% 124,047.
90
Less: Total tax paid (Note I) 116,050.
00
Tax payable 7,997.
90

COMPANY ACCOUTNING
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Tax payable is $7,997.90 as can be seen from the above calculation (Beresford, 2016).
Note I:
Note I:
Tax instalments paid
Instalment date Instalment amount
($)
28.07.2018 22,500.00
28.10.2018 31,420.00
28.02.2019 30,380.00
28.04.2019 31,750.00
Total tax paid for 2018-2019 116,050.00
Requirement 2:
Deferred tax assets as on June 30, 2019
Particulars Amount ($) Amount ($)
Deferred tax assets as on June 30, 2018 40,500.0
0
Add/ (less): For transactions in 2018-19

COMPANY ACCOUTNING
5
Accounting profit 400,493.00
Taxable profit 413,493.00
Deferred tax liability for 2018-19 3,900.0
0
44,400.0
0
Deferred tax liabilities as on June 30, 2019
Particulars Amount ($) Amount ($)
Deferred tax liabilities as on June 30, 2018 38,100.0
0
Add/ (less): For transactions in 2018-19
Tax effects on Revaluation profit on land 30,000.0
0
Deferred tax liability for 2018-19 68,100.0
0
Deferred tax liability is $68,100 (Parker, 2018).
Requirement 3:
Date Particulars Debit ($) Credit ($)

COMPANY ACCOUTNING
6
30-Jun-
19
Profit and loss account 124,047.90
Provisions for income tax 124,047.90
(Being provision for income tax made)
30-Jun-
19
Revaluation profit on land 30,000.00
Deferred tax liabilities 30,000.00
(Being deferred tax liabilities for revaluation profit on land is
recognized)
30-Jun-
19
Deferred tax assets 3,900.00
Provision for income tax 3,900.00
(Being deferred tax assets recognized for difference between
accounting and taxation profit)

COMPANY ACCOUTNING
7
Answer 2:
Value of assets and liabilities acquired by Block Limited in Wilson Ltd
Particulars Amount ($) Amount ($)
Trade receivables 30,000.0
0
Inventory 45,800.0
0
Land 500,000.0
0
Building 725,000.0
0
Plant and machinery 106,000.0
0
1,406,800.00
Less: Provision for environmental restoration 175,000.0
0
Net asset acquired 1,231,800.00
Number of shares issued in Block Limited (120000 x 5) 600,000.0