Financial Statements paper 2 1.5b

Deaniedani

I am calculating this right to get the figure £15,500 is by adding £14,900 and £17,300 which are the future tax amounts and take away the tax amount due which is £16,700 to get the £15,500?

Irrorate

Can you post the question please?

Zoynal98

Please see below workings:

Tax payable 1 Jul X0: £16,700
What they actually paid at Year End: £14,900
Overstated Tax by £1,800 (16,700 - 14,900 = 1,800)

Reduce the tax charge next year because of the overstatement:

£17,300 - £1,800 = £15,500

Hope this helps

Deaniedani

Thank you, I appreciate it.

Zoynal98