practice questions kaplan MTQ page no 505

sir if you allow i could send you question on the mail and their you can help me with clearing my doubt

I do not have Kaplan books - only the BPP Revision Kit. Have you watched my free lectures on this? The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well. Sorry, but we do not answer questions by email - only in the Ask the Tutor forums.

dear john sir, yes i have gone through the lectures and notes. i have been practing since one month but this question puzzled me i was not able to get how to solve this. i have copied the question. just give me brief how to come to suspense account balance and how to know about the income paid during the year Zbox, an entity, is preparing its financial statements for the year ended 31 December 20X1. A list of balances extracted as at that date was as follows: $ Revenue 760,000 Purchases 320,000 Administrative expenses 145,000 Distribution costs 59,000 Land and buildings – cost (land $200,000) 500,000 Buildings – accumulated depreciation at 1 January 20X1 100,000 Plant and equipment – cost 400,000 Plant and equipment – accumulated depreciation at 1 January 20X1 250,000 Trade and other receivables 65,000 Allowance for receivables – 1 January 20X1 1,000 Inventory – 1 January 20X1 43,000 Issued share capital ($1 each) 80,000 Share premium 30,000 Trade and other payables 42,000 Retained earnings – 1 January 20X1 325,000 Cash 59,000 Required: Task 1 (a) Confirm the missing amount to make the trial balance totals agree and open a suspense account for the balance. (3 marks) $ Debit/Credit Suspense account balance You have now been advised the suspense account balance relates to the income tax ledger account balance that was omitted from the list above. In addition, the finance director has advised you that all income tax liabilities for earlier years have now been settled and that the estimated tax liability for the year ended 31 December 20X1 is $15,000. (b) State the amounts you would expect to see in the financial statements for the year ended 31 December 20X1 in relation to income tax. (2 marks) Statement of profit or loss $______ Statement of financial position $______ The following notes are relevant to the preparation of the financial statements for the year ended 31 December 20X1: (i) No entries have been made in respect of a dishonoured cheque for $6,000. (ii) Buildings are depreciated on a straight-line basis of 2% per annum. Plant and equipment is depreciated at the rate of 20% per year on a straight-line basis. This should be charged to cost of sales. (iii) Closing inventory has been valued at $51,000. This included one item which had cost $5,000 which had been damaged and could now be sold for only $3,000 if repair work costing $500 was perform on it. (iv) The accountant of Zbox believes that the allowance for receivables can be reduced to $500. i am having doubt in part A and B. can you just tell me how how to come to suspense account and how do i get to know how much income tax is paid so that i can write in statement of financial position

For part (a) you need to write up a trial balance - you should know which of the balances are debits and which are credits. The two totals will be different and the missing figure to make them equal is what appears in the suspense account - just as with the example I work through in my lecture. For part (b) you know what amount appears in the SOPL because the question tells you that it is $15,000. The balance on the suspense account is the amount that has been paid during the year and so the balance of the $15,000 is what will appear on the SOFP.