Financial statements, Sample assessment 2 - question about tax
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marcin_karpinski
Registered Posts: 5
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
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
1
Comments
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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)1 -
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 x1
