Good Evening, John.
This maybe really simple, but I have spent enough time trying to figure it out!
I usually use T a/c for my workings as I find them easier and they work for me, anyhow, the problem is I don't understand how they come to find the figure for Tax Paid within the Year.
I have both Bpp and Kaplan revision books, but still no success.
I am trying to find out for the Cash flow statement the Income Tax paid.
In one example we have
B/D Cr 240
C/D Dr 290
In the workings we have
B/D 240 Cr
Statement PL 240 Cr
Carried down 290 Dr
and the missing Tax paid figure of
Tax Paid 190 Dr
Now, I know how T A/C work, I'm just struggling how they filled in the other figures.
I looked at another example of a working
Tax B/f 2,310
Charge for the year 2,900
Cash Paid (missing) (2310)
C/F 2900
If I could see these fit into a T a/c for my own logic it would help,
Thanks in advance
ACCA Forums
BTIncome Tax T A/C Missing Paid figure workings
Am i right in thinking we just CR with the Tax expense for the year, and then balance the account, with the plugin figure?
Just re watched your video lecture "Statements of cash flow part B" all is clear now, Thanks again.
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