In the accounting year to 31 December 2022, Newtown Sdn Bhd made an operating profit before...

 

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In the accounting year to 31 December 2022, Newtown Sdn Bhd made an operating profit before taxation of RM110,000. Income tax on the operating profit has been estimated as RM45,000. In Year 2021, income tax on 2021 profits had been estimated as RM38,000 but it was subsequently agreed at RM40,500. A transfer to the credit of the deferred taxation account of RM16,000 will be made in 2022. Required: Calculate the tax on profits for 2022 for disclosure in the accounts. (9 marks) In the accounting year to 31 December 2022, Newtown Sdn Bhd made an operating profit before taxation of RM110,000. Income tax on the operating profit has been estimated as RM45,000. In Year 2021, income tax on 2021 profits had been estimated as RM38,000 but it was subsequently agreed at RM40,500. A transfer to the credit of the deferred taxation account of RM16,000 will be made in 2022. Required: Calculate the tax on profits for 2022 for disclosure in the accounts. (9 marks)

Answer rating: 100% (QA)

To calculate the tax on profits for 2022 for disclosure in the accounts we need to consider the esti... View the full answer