Financial statements, Sample assessment 2 - question about tax

marcin_karpinski

Struggling with Reconciliation of profit from operations.... Financial statements, Sample assessment 2, question 1.

Statement of financial position, tax liabilities:
20X0: £3180
20X1: £2790

Statement of Profit or Loss, enden 30 June 20X1:
Tax paid: £2712.


In the answers, in Reconciliation.... the amount of Tax paid is: £3102

My question is - how was this amount (£3102) calculated?

I was trying to figure it out, and:
2790-2712=78
3180-78=3102
but why? could someone explain?


Thank you in advance

PeterC

At the beginning of the year they owe £3,180
This year they need to pay another £2,712, so they owe £5,892 (3,180+2,712)
At the end of the year they only owe £2,790, so they must have paid £3,102 (5,892-2,790)

SusuSum

20x0 is opening liability(taxation)
20×1 is Closing liability/tax

2712 is the tax from income statement
therefore we have to find tax paid which is

opening taxation + income statement tax - tax paid (x) = closing taxation
3180 + 2712 - x = 2790
find the value of x