Corporate Accounting for Jacky Ltd

Running head: CORPORATE ACCOUNTING
Corporate Accounting
Name of the Student:
Name of the University:
Author’s Note

1
CORPORATE ACCOUNTING
Table of Contents
Answer to Question 1......................................................................................................................2
Requirement a..............................................................................................................................2
Answer to Question 2......................................................................................................................3
Journal Entries.............................................................................................................................3
Answer to Question 3......................................................................................................................6
Reference.........................................................................................................................................9

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CORPORATE ACCOUNTING
Answer to Question 1
Requirement a
Deferred Tax Worksheet
Particulars Carrying Amount Tax Base Taxable
Temp’y Diffs
Deductible
Temp’y Diffs
$ $ $ $
Assets
Cash $20,000 $20,000
Accounts Receivables $80,000 $80,000
Allowance for Doubtful Debts ($4,000) $0 $4,000
Inventories $85,900 $85,900
Prepaid Insurance $3,000 $3,000
Equipment $4,00,000 $4,00,000
Accumulated Depreciation ($40,000) ($60,000) ($20,000)
Motor Vehicles $60,000 $60,000
Accumulated Depreciation ($15,000) ($12,000) $3,000
Liabilities
Accounts Payables $50,250 $50,250
Provision for Warranties $6,900 $6,900
Provision for Annual Leave $11,000 $11,000
Rent Payable $6,000 $6,000
Loan $25,000 $25,000
Total Temporary differences $3,000 $10,900
Deferred tax liability (30%) $900
Deferred tax asset (30%) $3,270
Deferred Tax Worksheet:
Figure 1: (Statement showing Deferred Tax Worksheet)
Source: (Created by Author)

3
CORPORATE ACCOUNTING
Journal Entries Relating to Current and Deferred Tax Assets and Liabilities
Dr. Cr.
Date Amount Amount
30-06-2016 Income Tax Expense A/c. Dr. $51,945
Income Tax Refundable A/c. Dr. $1,73,355
To, Advance Tax Paid A/c. $2,25,300
Deferred Tax Assets A/c. Dr. $3,270
To, Deferred Tax Liability A/c. $900
To, Income Tax Expense A/c. $2,370
Profit & loss A/c. $51,045
To, Income Tax Expense A/c. $51,045
(Being income tax expense transferred to P/L A/c.)
(Being deferred tax assets and deferred tax liabilities
recorded)
Particulars
(Being Income tax expenses adjusterd with advance tax
paid and income tax refundable recorded)
Figure 2: (Statement showing Journal Entries)
Source: (Created by Author)
Answer to Question 2
Journal Entries
In the books of XYZ Ltd.
Journal Entries
Dr. Cr
Date Particulars Amount Amount