Basin Ltd's statement of profit or loss for the year ended 30 June 2021 and extracts...

 

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Basin Ltd's statement of profit or loss for the year ended 30 June 2021 and extracts from its statements of financial position as at 30 June 2021 and 30 June 2020 are shown below. The statements for the current year are yet to be finalised by accounting for income tax. Basin Ltd Statement of Profit or Loss for the year ending 30 June 2021 Income $ 900 000 50 000 41 200. Service revenue Rent revenue Insurance claim for loss of profits Less: Expenses Employee expenses Insurance expense 991 200 660 000 50 000 5 500 Accounting fees Bad and doubeful debts 19 500 3 250 5 500 4 000 Cleaning and maintenance Depreciation of equipment Entertainment expenses Interest on borrowings Legal fees Motor vehicle expenses Other Restructuring costs Profit before tax 75 000 3 800 6 000 3 750 23 000 859 300 S 131 900 Basin Ltd Statement of Financial Position (Extract) as at 30 June 2021 2020 Assets S 900 100 240 550 S 800 100 Cash at bank Trade debtors 200 000 (20 000) 5 000 Allowance for doubtful debts (38 000) 10 950 Prepaid insurance Land - at fair value Equipment - at cost Accumulated depreciation 450 000 58 000 (24 500) 142 400 300 000 58 000 (19 000) Other debtors Deferred tax asset 18 000 Linbilities 239 000 543 800 Trade creditors 245 000 Borrowings Uneamed rent revenue Provision for employee benefits 438 500 50 000 49 500 23 000 40 000 Provision for restructuring Other creditors 10 000 Current tax liability Deferred tax liability 13 300 32 700 Additional information (a)The original cost of the land is S200 000. (b)The tax written down value of equipment at 30 June 2021 is $28 000 (2020: $35 000). During the 2021 year, there were no additions or disposals of equipment. (c)Legal fees of S3800 are capital in nature and non-deductible for tax purposes. (d)Other creditors at 30 June 2021 include an accrual for accounting fees of S4500 for work not yet performed (2020: SNil). For tax purposes, the accounting fees are deductible only if work has been perfomed. (e)For tax purposes, restructuring costs are deductible only when paid. (f) Other debtors at 30 June 2021 include S41 200 relating to an insurance claim that is in- process. Insurance income is only assessable for tax purposes after the insurance proceeds have been received. (g)The corporate tax rate is 30%. Required: i. Prepare the curent tax worksheet for the year ending 30 June 2021 and the current tax entries for the year. ii. Prepare the deferred tax worksheet at 30 June 2021 and the deferred tax entries for the year. Basin Ltd's statement of profit or loss for the year ended 30 June 2021 and extracts from its statements of financial position as at 30 June 2021 and 30 June 2020 are shown below. The statements for the current year are yet to be finalised by accounting for income tax. Basin Ltd Statement of Profit or Loss for the year ending 30 June 2021 Income $ 900 000 50 000 41 200. Service revenue Rent revenue Insurance claim for loss of profits Less: Expenses Employee expenses Insurance expense 991 200 660 000 50 000 5 500 Accounting fees Bad and doubeful debts 19 500 3 250 5 500 4 000 Cleaning and maintenance Depreciation of equipment Entertainment expenses Interest on borrowings Legal fees Motor vehicle expenses Other Restructuring costs Profit before tax 75 000 3 800 6 000 3 750 23 000 859 300 S 131 900 Basin Ltd Statement of Financial Position (Extract) as at 30 June 2021 2020 Assets S 900 100 240 550 S 800 100 Cash at bank Trade debtors 200 000 (20 000) 5 000 Allowance for doubtful debts (38 000) 10 950 Prepaid insurance Land - at fair value Equipment - at cost Accumulated depreciation 450 000 58 000 (24 500) 142 400 300 000 58 000 (19 000) Other debtors Deferred tax asset 18 000 Linbilities 239 000 543 800 Trade creditors 245 000 Borrowings Uneamed rent revenue Provision for employee benefits 438 500 50 000 49 500 23 000 40 000 Provision for restructuring Other creditors 10 000 Current tax liability Deferred tax liability 13 300 32 700 Additional information (a)The original cost of the land is S200 000. (b)The tax written down value of equipment at 30 June 2021 is $28 000 (2020: $35 000). During the 2021 year, there were no additions or disposals of equipment. (c)Legal fees of S3800 are capital in nature and non-deductible for tax purposes. (d)Other creditors at 30 June 2021 include an accrual for accounting fees of S4500 for work not yet performed (2020: SNil). For tax purposes, the accounting fees are deductible only if work has been perfomed. (e)For tax purposes, restructuring costs are deductible only when paid. (f) Other debtors at 30 June 2021 include S41 200 relating to an insurance claim that is in- process. Insurance income is only assessable for tax purposes after the insurance proceeds have been received. (g)The corporate tax rate is 30%. Required: i. Prepare the curent tax worksheet for the year ending 30 June 2021 and the current tax entries for the year. ii. Prepare the deferred tax worksheet at 30 June 2021 and the deferred tax entries for the year.

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Requirement i Requirement ii Tax bases DTADTL 30 28000 ... View the full answer