- This topic has 2 replies, 1 voice, and was last updated 1 year ago by jackstyna.
- October 9, 2019 at 8:11 pm #548534jackstyna
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)
If I could see these fit into a T a/c for my own logic it would help,
Thanks in advanceOctober 9, 2019 at 8:52 pm #548537jackstyna
Am i right in thinking we just CR with the Tax expense for the year, and then balance the account, with the plugin figure?October 10, 2019 at 6:54 pm #548695jackstyna
Just re watched your video lecture “Statements of cash flow part B” all is clear now, Thanks again.
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