Hi mike.
Sofp
2010. 2009
CA
Tax refund. 500. Nil
NCL
Def tax. 1200. 800
CL
Current tax. Nil. 25000
SOPL 2010.
Tax relief. 700
How much tax is paid?
This is my answer
B/f ( 800+ 2500)
Tax relief 700
C/f (1200-500)
I got 140 tax. Paid but Kaplan answer is 1900. I don't understand why.
Ask the Tutor ACCA FR
S of cashnflow June 2010
Heaven knows how you got 140! All the figures are round hundreds!
It also would have helped if you had written 2,500 instead of 25000 (that's why I always use the thousand separating comma
In the deferred tax account, debit, I have 1,200 carry forward liability
On the credit side I have 800 brought forward
So a balancing figure of 400 on the credit side going to the debit of the current tax account
Also on the current tax debit side I have 700 from the tax relief, double entered in the sopl
On the credit side of the current tax account I have 2,500 brought forward liability
In addition on the credit side carried forward to next year's debit side I have a 500 asset tax refund receivable
That gives me a missing figure on the debit side of 1,900 and that must be cash paid
OK?
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