Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › tax liability
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- September 14, 2016 at 7:18 pm #340533
Banjo Co estimated that its income tax liability on the profit for the year ended 30 June 20X5 was $16940. This liability was settled in February 20X6 by a payment of $17,500. Having made a tradin loss for the year ended 30 June 20X6, Banjo Co estimated that it would receive a repayment of income tax during the following period.
Sir I am unable to understand how to do such questions and there are no lextures for it.
So far I did-
Tax liability account
_________________________________________Balance b/d 16940
Cash 17500Now what is amont hsould appear on SOPL and SOFP
pls helps thanks
September 14, 2016 at 9:01 pm #340552This could not be asked in Paper F3 because you are not expected to know tax tules.
However since they made a loss in the year ended 30 June 20X6 there would be no tax payable. Therefore they would receive back as a repayment the tax that they had over paid.
Surely there is an answer in the same book in which you found the question?!!
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