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Hi there I am stuck with MCQ practice questions 4 and 5 under income tax. Can please guide me through those questions. thanks
Here is the question:
2015 2014
Deferred tax. 420 360
Current Tax. 170 150
The charge for tax taxation in SOPL for the year ended 30 April, 2015 showed 280.
How much tax was paid during the year ended 30 April 2015?The other Question:Here is the question:
Prude plc’s trial balance as at 31
December, 2014 showed balances
brought forward from last year on both
the Current Tax account and the Deferred
Tax account.
The liability of $3,000 brought forward on
the Deferred Tax account was increased
to $4,500 at the end of the year due in
part to the deferred tax implications
arising from the revaluation of some of
Prude plc’s properties. The property had
been revalued by $3,200.
Prude plc’s accounts department had
calculated the tax liability based on this
year’s profits at the rate of 25% to be
$4,600 and $1,500 tax had been paid to
the State Revenue Service during the year
The tax charge in the statement of profit
or loss was shown as $7,700
What was the balance brought forward
from 2013 on the Current Tax account?
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