Assignment On Corporate Accounting of DJB limited

   

Added on  2020-04-01

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Running head: CORPORATE ACCOUNTINGCorporate accountingName of the UniversityName of the studentAuthors note
Assignment On Corporate Accounting of DJB limited_1
1CORPORATE ACCOUNTINGAnswer to question 1:Requirement a):Worksheet for Current Tax Liability/(Refundable):ParticularsAmountAmountAccounting profit before tax$6,50,000Add:Warranty Expenses$90,000Bad & Doubtful Debts$25,000Depreciation Expense for accountingpurpose$60,000$1,75,000$8,25,000 Less:Actual Warranty Expense paid$70,000Actual Bad Debt Written off$15,000Depreciation Expense for TaxPurpose$1,00,000$1,85,000Taxable income$6,40,000 Tax on taxable income @30%$1,92,000Current Tax Liability$1,92,000
Assignment On Corporate Accounting of DJB limited_2
2CORPORATE ACCOUNTINGRequirement b):BaseParticularsAccountingTaxComputer-at Cost$3,00,000$3,00,000Useful Life (in years)53Depreciation Expenses p.a.$60,000 $1,00,000 Period of Utilization (in years)11Accumulated Depreciation$60,000 $1,00,000 Equipment (net Value)$2,40,000 $2,00,000 Requirement c):Deferred Tax Worksheet:ParticularsCarrying AmountTax BaseTaxable Temp’y DiffsDeductibleTemp’y Diffs$$$$AssetsComputer-at Cost$3,00,000$3,00,000AccumulatedDepreciation($60,000)($1,00,000)($40,000)Accounts Receivable$1,00,000$1,00,000$0 Allowance for DoubtfulDebts($10,000)$10,000
Assignment On Corporate Accounting of DJB limited_3
3CORPORATE ACCOUNTINGLiabilitiesProvision for Warranties$30,000$30,000Provision for EmployeeBenefits$20,000$20,000Total Temporary differences$0 $20,000 Deferred tax liability (30%)$0 Deferred tax asset (30%)$6,000 Requirement d):In the books of ShouldBeMyOwnWork Ltd.Journal EntriesDr.Cr.DateParticularsAmountAmount30/06/2017Income Tax Expense A/c.Dr.$1,92,000To,Current Tax Liability A/c.$1,92,000(Being Income tax expenses due on Taxable Income)Deferred Tax Assets A/c.Dr.$6,000To,Income Tax Expense A/c.$6,000(Being deferred tax assets recorded)
Assignment On Corporate Accounting of DJB limited_4

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