Prepare extracts from the statement of profit or loss

Assignment Help Accounting Basics
Reference no: EM133064014

Question - Aquarius Ltd's draft financial statements for the year ended 31 December 20X9 show a profit before tax of R170,000. At 31 December 20X9 there are cumulative taxable temporary differences of R50,000, i.e. the carrying value of the net assets is higher than the tax base by this amount. Current tax for the year at 30% has been estimated at R33,000.

For the year ended 31 December 20X8 the financial statements had a profit before tax of R145,000. At 31 December 20X8 the cumulative taxable temporary differences were R40,000 and current tax for the year at 30% was R30,000.

Required - For the years ended 31 December 20X8 and 31 December 20X9:

(a) Prepare the journal entry to record deferred tax for the years ended 31 December 20X8 and 20X9.

(b) Prepare extracts from the statement of profit or loss for the year ended 31 December 20X9 and the statement of financial position at 31 December 20X9, both with comparatives, showing how the current and deferred tax would be reflected.

Reference no: EM133064014

Questions Cloud

How did you feel running your own business : How did you feel running your own business? successful? or not successful?
What total amount should be reported as cash : In the correct assets section of the December 31,2019 balance sheet what total amount should be reported as cash and cash equivalents
Commercial risks and political risks of non-payment : When it comes to terms of payment; what are two differences between commercial risks and political risks of non-payment
Diminishing marginal utility for a good : Explain why a rational consumer who has diminishing marginal utility for a good would not consume an additional unit when it generates negative marginal utility
Prepare extracts from the statement of profit or loss : Prepare extracts from the statement of profit or loss for the year ended 31 December 20X9 and the statement of financial position at 31 December 20X9
How does a consumer budget set differ : How does a consumer's budget set differ from his budget constraint? For a consumer with a given level of income
Nation labor market situation : Suppose the following data describe a nation's labor market situation in years 1 and 2.
What is the total photon flux density : What is the total photon flux density (in photons per square metre per second) in the spectrum and What is the maximum efficiency of this crystalline silicon
Explain sufficient and appropriate audit evidence : Technological innovations within the industry have caused a major product to become obsolete. Explain sufficient and appropriate audit evidence

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd