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Sir ,
In question 2 of Dec.2012 paper the adjustments regarding note 6 doesn’t make sense to me.they say that balance on current tax represent under\over provision for last year(1100) but used defered tax 1200 in the calculation to calculate cost to the income stmnt(200) .Have you tried going through the mini-exercises towards the end of the course notes?
It seems not!
These tax questions are SO, SO EASY that it’s criminal not to be collecting the 2 (and sometimes 4) marks on offer
Deferred Tax account
Debits: 1,000;
Credits: 1,200;So a missing figure of 200 on the debit side that needs to be transferred to the Current Tax account
Current Tax account
Debits: 1,100; 7,400;
Credits: 200So a missing figure on the credit side that represents the charge for company tax to this year’s statement of profit or loss
“they say that balance on current tax represent under\over provision for last year(1100) ”
– you sound like you care whether this was an under- or an over-provision from last year.
Why do you want to know whether it’s under- or over-? Tell me, who cares whether it’s under- or over-?
“…. but used defered tax 1200 in the calculation to calculate cost to the income stmnt(200)” – no it isn’t. The charge for tax is $8,300
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