Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Fresco co published acc qstn
- This topic has 5 replies, 2 voices, and was last updated 3 years ago by P2-D2.
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- February 11, 2021 at 9:54 am #610016
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 200I get 3000 but bpp ans is 1800 why ?? They deduct 800 why and add 200 can you please explain me the reason.
February 13, 2021 at 10:58 am #610232Hi,
Where do I find this question, please?
Thanks
February 13, 2021 at 3:05 pm #610261This question is from past exam qstn which is Fresco co June 2012 and in bpp revision book also have this question.
February 19, 2021 at 7:51 pm #610993Hi,
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
February 20, 2021 at 10:09 am #611064Thanks 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.
February 22, 2021 at 9:06 pm #611368Hi,
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
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