A Junior accountant for Terry plc has challenges when it comes to accounting for taxation. Terry plc
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Question:
A Junior accountant for Terry plc has challenges when it comes to accounting for taxation. Terry plc estimated its income tax liability for the year ended 30 September 2021as BWP72,000. Last year's income tax liability estimate was BWP60,000.
Assume Terry paid the following actual tax figures in May 2021in respect of 2020 taxes, approved by Government tax agents.
Scenario 1 BWP66,000
Scenario 2 BWP56 000
REQUIRED
(a) State whether each Scenario is an overprovision or under-provision and compute the incomes tax expenses to be shown in 30 September 2021 Income Statement for each of the above scenarios.
Related Book For
Fundamentals of Financial Management
ISBN: 9780273713630
13th Revised edition
Authors: James van Horne, John Wachowicz
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