• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

New! Lectures for ACCA AAA September 2022 Exams are now available >>

New! BPP Books for ACCA September 2022 Exams are now available, get your discount code >>

Journal Entry Income Tax

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Journal Entry Income Tax

  • This topic has 2 replies, 2 voices, and was last updated 8 months ago by crazyjames1080.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • October 7, 2021 at 10:05 pm #637219
    crazyjames1080
    • Topics: 9
    • Replies: 18
    • ☆

    Hello there

    I’ve just watched the lecture in the video below and I’m struggling to understand the journal entries and why we put each figure in their respective debit/credit column. Did we put the £400 figure on the credit side because that’s where it was on the trial balance? If so, how did we know to put the £3500 figure on the debit side? Are there any other double entries relating to this that are worth knowing for this to make more sense? Thank you.

    https://opentuition.com/acca/fr/ias-12-introduction-acca-financial-reporting-fr/

    James

    October 9, 2021 at 10:38 am #637316
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6119
    • ☆☆☆☆☆

    Hi James,

    The figures in the trail balance are the balances at the end of the reporting period once we have closed off the accounts. So the credit balance of 400 is the closing balance on the credit side of the T-account before any post-year end adjustments.

    The 3,500 is the estimate of the tax payable due to the tax authorities and this has not been accounted for. To adjust for it in the T-account then we need to increase the balance from 400 to 3,500, so that the 3,500 is the closing credit balance carried forward that is then paid next year. Remember that this closing carried forward balance will be the opening balance next year and it needs to be a credit. The carried forward is therefore the debit balance, hence why we have shown it where it is. If you’re still unsure then maybe pop back briefly to the FA notes/videos on the topic.

    Thanks

    October 10, 2021 at 1:25 pm #637391
    crazyjames1080
    • Topics: 9
    • Replies: 18
    • ☆

    Hello there

    Many thanks for your help. I’m not sure I fully understand it so I will go back and have a look at the FA notes/videos as suggested. Thank you.

    James

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate

If you have benefited from OpenTuition please donate.

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • nojwwnolife on The nature and structure of organisations – ACCA Paper BT
  • John Moffat on Discounted Cash Flow Further Aspects, Lease versus Buy – ACCA Financial Management (FM)
  • ben920331 on Discounted Cash Flow Further Aspects, Lease versus Buy – ACCA Financial Management (FM)
  • John Moffat on The Statement of Financial Position and Income Statement (part d)
  • Viktoriia.Yanchuk on The Statement of Financial Position and Income Statement (part d)

Copyright © 2022 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy