non-current assets classified as ‘held for sale’

also, Non-current assets held for sale: 2011: Dr 2,000 ; Cr 8,000 2010: Dr nil ; Cr 7,200 and Depreciation of property, plant and equipment for the year ended 31 March 2011 was $640,000.

Do you have an exam reference for this question? I'm finding your post too difficult to follow! You switch from years side by side to vertical You switch from round $000s to no rounding I have no idea what debits and credits are in relation to assets held for sale :-(((( If I could see the question properly I may be able to help you :-))))

sorry for being such a mess :(( here's the reference: https://www.accaglobal.com/content/dam/acca/global/PDF-students/2012/f7int_jun_2100_qu.pdf F7 June 2011 q3 Bengal I've already figured out that we use these 'held for sale' assets as part of c/f balance when calculating the PPE purchase, but it's still not completely comprehensible to me. also, I don't quite understand why we take only Dr of A/C 'current tax payable' for calculation of tax paid (both, c/f and b/f), and not the difference between Dr and Cr. please, try to help me, you're my only hope!

Balances in the tax account do not represent CASH PAYMENTS The balances brought forward are what we owe or what we have overpaid as the start of the year The balances carried forward are the tax that we owe and that we shall negotiate to settle next year (VERY occasionally, there may be a debit balance carried forward representing an overpayment of tax that the taxman is due to pay us back, but that's an extremely rare situation) The tax charge for the year will (999 times out of 1,000) be debited to the statement of income so the credit entry will be put in the tax account Add up all those figures, balance off the tax account - the missing figure will almost certainly be missing from the debit side and that's the amount of CASH that must have been paid Better?

Mike, I'm sorry, my bad, I'm really stupid. :((( I just got the summary of the current liabilities as a Cr on current tax a/c and thought we should balance tax assets and tax liabilities by taken the difference between them. in practise, we actually may have this situation, though. for ex., our business accounts may have tax assets in one section of the balance while having tax liabilities in the other (all on the same types of tax!). so, I think this thought drew me from the right pass. much, much better now, thanks to you and your kind support and advice offered to poor us :)

You're welcome - I think! I'm not sure that I follow all this about "some tax on one side and some on the other all on the same type of tax" but if you're happy, then I'm happy too!

well, what I meant was that at the end of the period we might have both tax asset and tax liability on two different accounts. on corporate tax, for example. or any other type of taxes. and we have a separate account for deferred taxes. I'm not sure why, but it doesn't really matter at the moment. yeah, quite happy, thanks again :)

Ah, now I understand. In an exam question, balance off the Deferred Tax account, double enter the balancing figure into the Current Tax Account. Balance off the Current Tax account and the missing figure is then the cash paid Better?

yep

That's good!