The following information was extracted from the records of Lovett Ltd. for the year ended 30 June 2024.

Account receivable 130000

Accumulated depreciation- motor vehicles (70000)

Allowance for doubtful debts (21000)

Bad debts expenses 12000

Deferred tax asset 9120

Deferred tax liability 5010

Insurance expenses 6800

Interest payables 9000

Machines 350000

Rent receivable 2500

Rent revenue 7900

Additional information:

Estimated useful life of the machine for tax purposes 12 years

Estimated useful life of the machine for accounting 20 years

Rent received 2000

Opening balance for prepaid insurance 13200

Opening balance for the allowance for doubtful debts 27000

Interest expenses 3000

Tax rate 30%

Profit before tax 105300

Required:

Prepare the current tax worksheet and related journal entries,

prepare the deferred tax worksheets and related journal entries.

Answer rating: 100% (QA)

Current Tax Worksheet and Journal Entries 1 Calculate taxable income Profit before tax105300 Add bac... View the full answer