DFS Rec of profit from operations - Tax

joerd84

Hi

On the past papers that i've done this always seems straight forward to work out because the years amounts for tax on the balance sheet and income statement have been the same, so i've just put the amount in the previous year. But what if the tax amounts on the balance sheet and income statement are different?

I know there's a working for this but not sure what it is as I haven't came accross any examples. If anyone could help that'd be great.

Thanks

Steve Collings

Your working will be:

Tax creditor b/fwd (from prior year position statement), plus
Tax charge per statement of comp income, less
Tax creditor c/fwd (from current year position statement), equals
balancing figure of tax paid.

Regards
Steve

joerd84

Thanks a lot Steve

joerd84

Sorry to bother, is this a similar working for the interest as well? On past papers for cash flow I've only come across one interest figure and that is in the income statement.

jilt

joerd84 wrote: »

Sorry to bother, is this a similar working for the interest as well? On past papers for cash flow I've only come across one interest figure and that is in the income statement.

Yeah the figure in the SoCI is the one to use unless in the SoFP it gives you the liability at each year end, in that case you follow the working for tax

lisnic

for tax i draw up a t account

same for working out receipt on disposal of ppe and amounts paid for additons to ppe