logo

MAA363 Corporate Accounting

   

Added on  2020-02-18

6 Pages913 Words174 Views
Department of AccountingMAA363 CORPORATE ACCOUNTINGASSIGNMENT - Trimester 2, 2017Question THREE ProformaFamily name:First names:Deakin IDDeakin Username:SPECIAL INSTRUCTIONS:Question 3 must be completed and submitted on this proforma.Please ensure that you understand the University rules on plagiarism – it must be your own work. Include your answer in sections provided but include WORKINGS on the LAST PAGE of the answers to each question.You can create more lines on the journal entry tables etc. by placing the cursor at the end of a row and pressing return.
MAA363 Corporate Accounting_1
2Question 3 (Proforma)MAA363 Corporate AccountingQUESTION 3 (PART A)1.Calculate the taxable profit and the current tax liability for financial year ended 30 June 2017.Calculation of the taxable profit / tax loss and the current tax liabilityProfit before tax (as given in the question)Add: Amount disallowed in Income Tax : Depreciation as per Accounting5512502342000Entertainment ExpenseInsurance ExpenseAnnual Leave ExpenseLong Service leave expensesWarranty ExpenseProv. For Doubtful debtsLess: Rent RevenueLess: Amounts allowed as deduction: Insurance ExpenseAnnual Leave ExpenseLong Service leave expensesWarranty ExpenseBad debtsDepreciation as per Income taxAdd: Rent Revenue in cash4500013700047000112000273000270001470001045250124000160008900031700016000735000135000-1162000-116750Taxable income as per Income taxIncome tax liability (30% of 2225250)2225250667575Income tax liability (30% of 2225250)667575Journal entries to recognise current tax liability/ tax loss.DateParticularsDrCr30th June ‘17Profits and loss account Dr. 667575To provision for income tax667575(Being tax liability for the year booked)Insert student ID number here
MAA363 Corporate Accounting_2
3Question 3 (Proforma)MAA363 Corporate Accounting2.Calculate deferred tax asset and deferred tax liability balances as at 30June 2017. AccountsCarryingAmountTax BaseTaxableTemporaryDifferenceDeductibleTemporaryDifference$$$$DepreciationEntertainment ExpenseInsurance ExpenseAnnual Leave ExpenseLong Service leave expWarranty ExpenseProv. For Doubtful debtsRent Revenue551250450001370004700011200027300027000-147000494000-7350000-124000-16000-89000-317000-16000135000-427000-18375067000-55125(183750*30%)20100(67000*30%)Total Temporary Differences-116750-35025Creation of net deferred liability (30% of 116750)-35025Opening deferred tax liability balance as on 30th June, 2016102900Reversal of the liability (102900-35025)67875Adjustment: Reversal of the deferred tax liability67875 Tax effect journal entries at 30 June 2017DateParticularsDrCr30th Jun’17Deferred tax liability Dr.67875To Profit and loss account67875(Being reversal of deferred tax liability)Insert student ID number here
MAA363 Corporate Accounting_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Corporate Accounting Project Assignment
|5
|1100
|70

Company Accounting: Tax Calculation, Deferred Tax Worksheet, Journal Entries
|10
|1662
|92

Accounting Policies, Change in Accounting Estimates and Errors
|8
|1570
|22

Advance Financial Accounting
|7
|755
|116

Sample Question Paper Corporate Accounting
|7
|841
|36

Corporate Accounting Question and Solution
|7
|873
|113