Fresco co published acc qstn — OpenTuition Forums

VDVidhi Dhakan5y ago

Hi sir, I have doubt in 4) part tax calculation . I did for SOPL My ans Current estimate tax. 2400 Under provision. Add 800 Diff tax reduction. Less 200 I get 3000 but bpp ans is 1800 why ?? They deduct 800 why and add 200 can you please explain me the reason.

PP2-D2Tutor5y ago#1

Hi, Where do I find this question, please? Thanks

VDVidhi Dhakan5y ago#2

This question is from past exam qstn which is Fresco co June 2012 and in bpp revision book also have this question.

PP2-D2Tutor5y ago#3

Hi, This is one of the trickier tax adjustments as the closing balance is a tax refund and not amount due to the tax authorities. So, were you have 2,400 then this should be (2,400). I think you then get the right answer using your methodology => (2,400) + 800 -200. I prefer to use T-accounts as this makes it a bit easier to work out and understand. Thanks

VDVidhi Dhakan5y ago#4

Thanks sir. I understand your explanation. Ya I tried to use T-account but I confused more I don’t know why. Anyway, thanks sir for your explanation.

PP2-D2Tutor5y ago#5

Hi, I personally think that it is easier to use a T-account but it is a lot more challenging to do so with the online exams, so can understand when people approach it differently. Thanks