DFS Help

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi There

I've been given extra information to be able to complete an IS and BS. I am hoping someone will be able to help with this as I am confused:

They have asked to make a provision for the following:
a. Final Ordinary Dividend - I know that I don't do anything with this.
b. Directors Fees for £1500 - does this go to Admin Exps?
c. Pension to the widow of a director £1000 - Would this go in Directors Salaries or Admin Exps?
I've been given a Proforma BS & IS but it doesn't have an accrual line in it - can I add this in?

And the last problem, I have been given the figure for the Corporation Tax for the year end but they also say that last years is still outstanding - do I just add these together and put in Taxation in IS and BS?

Thanks in advance for any help - it is appreciated as this is now driving me crazy!

Cheers
Ange

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:DFS Help

    The directors fees - just put to admin expenses.

    The directors widows pension - put to admin expenses (it shouldn't go to directors remuneration because a deceased director cannot have remuneration).

    Regarding the corp. tax. The prior year charge which is unpaid should already be in the brought forward balance in creditors. Don't include last year's charge again in the current year as you will overstate the tax creditor. Just put in the current year's tax charge. The tax charge per the income statement will not be the same as the tax creditor as the tax creditor will have 2 year's provisions.

    Best regards
    Steve
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:DFS Help

    Hi Steve

    I did put the directors fees and widows pension to admin expenses which is good.

    I did the corporation tax completely wrong. I did add the old year and new year together and put it in both the IS and BS, my BS was out by last years tax which now makes sense why!

    I ended up adding the extra line in the proforma for provisions, I would love to know if I was actually allowed to do this? The main reason my BS was so out was because I forgot to add the current years profit into the retained profits in the BS, once I did this I was only out by the corporation tax.

    I'm dreading the exam, i've been studying the consolidated accounts tonight and am really struggling with the first bits about goodwill and retained profits of the subsidary but am sure I will get there.

    Thank you for answering my post.

    Cheers
    Ange

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