Under income tax expense, the answer is different for June 2013 and June 2014. For June 2013, trial balance under Atlas, the provision for tax was $27.2m, current tax was $1.2m, and difference of deferred tax was $3.2m, the income tax expenses answer was $$29.2m ($27.2m-$1.2m+$3.2m)
The answer for June 2014, Trial balance under Xtol, the provision for tax was $28m, the current tax was $3.2m, and difference in deferred tax $3.7($8.3-$4.6), naturally, I would expect income tax to be $28m-$3.2+$3.7 equal $28.5, however, under ACCA answer, it was $28m+$3.2m+$3.7m=$34.9m
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Wrong answer provided by ACCA for F7 past year question?
Check the list of balances again and check to see that $3.2 in Xtol is really in the left hand column
My guess is that it's in fact in the right hand column whereas in Atlas the $1.2 IS in the left hand column
Now, think about it!
And post again if you can't sort it out in your mind
I actually can, and I did. not in my mind, but on a piece of paper with T accounts, as taught us our dear ACCA Tutor. if anything useful I can do now in my life at all, that's calculating current and deferred taxes :)
btw, I's not me on other accounts, as you could think, don't blame for what I've never done.
or may be it's you by yourself who asks yourself these questions? well, that's the thought.
ok, thank you for your help, sir, I'll look for one in another place - I think.
Victoria, what are you going on about? From "btw, ......." you lost me. I have not a clue what you are talking about!
ok, never mind. Internet's just such a grey area, much misunderstanding here.
Ok, move on
Dear Mike,
Thank you so much for your pointers. It is very clear now. For F7, is it a must to learn T entry?
If for no other topic, then I find it's a MUST for the tax movement in a question requiring preparation of accounts (I also use them for cash flow statement questions)
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