Extracts from trial balance at 31 March, 2019 GH¢ Current tax credit balance 1,600,000 Deferred tax liability 5,200,000 The balance on current tax represents the under/over provision of the tax liability for the year ended 31 March, 2018. The required provision for income tax for the year ended 31 March. 2019 is GHe38-8 million. The difference between the carrying amounts of the net assets of the company and their (lower) tax base at 31 March, 2019 is GHc54 million. The rate of income tax is 25%. Required: Prepare a Statement of Profit or Loss Extract and Statement of Financial Position Extract for 31 March, 2019.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Extracts from trial balance at 31 March, 2019
GH¢
Current tax credit balance
1,600,000
Deferred tax liability
5,200,000
The halance on current tax represents the under/over provision of the tax liability for the year
ended 31 March, 2018. The required provision for income tax for the year ended 31 March.
2019 is GHe38-8 million. The difference between the carrying amounts of the net assets of the
company and their (lower) tax base at 31 March, 2019 is GH¢54 million. The rate of income
tax is 25%.
Required:
Prepare a Statement of Profit or Loss Extract and Statement of Financial Position Extract for
31 March, 2019.
t mie ol
Transcribed Image Text:Extracts from trial balance at 31 March, 2019 GH¢ Current tax credit balance 1,600,000 Deferred tax liability 5,200,000 The halance on current tax represents the under/over provision of the tax liability for the year ended 31 March, 2018. The required provision for income tax for the year ended 31 March. 2019 is GHe38-8 million. The difference between the carrying amounts of the net assets of the company and their (lower) tax base at 31 March, 2019 is GH¢54 million. The rate of income tax is 25%. Required: Prepare a Statement of Profit or Loss Extract and Statement of Financial Position Extract for 31 March, 2019. t mie ol
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