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Comments

  1. avatar says

    Hi, pls. look at the 13. minute in the video. Why have we eliminated 800? We have building for 4,000 less depreciation of 800 plus revaluation of 800. And where does the another elimination of 800 come from?
    Thanks a lot.

  3. Avatar of nkmile64 says

    Thank you Sir for yet another excellent lecture!

    I found especially useful the explanation regarding the Current Tax Underprovision but please take a moment and explain this question of mine. Part (vi) of the question is a little bit confusing because it states, and I quote from the original:
    “The figure in the Income Statement is the underprovison for Income Tax for the year to 31 March 2004″.
    However, if I correctly understood your sayings,the figure of 55 in the Income Statement is just a draft provision entry made by someone in the Accounting Dpt. at year-end i.e.

    CR Current Tax (in B/S) X
    DR Income Tax Expense (I/S) X

    It just happened that the amount was 55 i.e. equal to last year’s underprovision and as a result the balance of the Current Tax was zero and that is why it does not appear under Current Liabilities in the draft B/S.
    Is this what has happened or have I completely misunderstood it?
    Your advice would be gratefully appreciated.

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