You are a junior accountant in Maribelle Berhad. Currently, you have been asked by the senior accountant
Question:
You are a junior accountant in Maribelle Berhad. Currently, you have been asked by the senior accountant to prepare the company’s accounts for the current financial year. Given that the deferred tax liability for the year 2018 for the company was RM3,600,000. The Statements of Financial Position of Maribelle Berhad as at 31 December 2020 and 2019 showed the following relevant items:
Additional information:
(1) The tax depreciated value for property, plant and equipment for 2020 and 2019 were RM96,800,000 and RM104,800,000 respectively.
(2) Research and development expenditure refers to the development cost that was capitalised and being amortised. The tax rule allows all research and development costs to be written off immediately in computing taxable profits.
(3) The company provides for doubtful debts of RM1,200,000 for the years 2020 and 2019 but tax rule allows only specific bad debts.
(4) Accrued interest relates to the loan taken out on 1 July 2018. Interest is paid in arrears on 30 June each year. Interest paid is allowed for tax purpose.
(5) The company provides for warranties on goods sold but the tax rule allows when reimbursements are made.
REQUIRED:
(i) Calculate the taxable or deductible temporary differences of Maribelle Berhad as at 31 December 2019 and 2020.
(ii) Determine the amount of deferred tax for the years ended 2019 and 2020 assuming the tax rate is at 25%.
(iii) Prepare the journal entries to record the amount charged in the Statement of Comprehensive Income for the years ended 31 December 2019 and 2020.
Expert Answer:
i Calculation of Temeporary diff Particulars Amount in RM 000 Diff of Depreciation for t... View the full answer
