FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Q5.
(Franking Account)
Rudimentary Pty Ltd, a corporate tax entity, has the following transactions for the 2017/18 tax year:
Date
Transaction
$
30/06/17
Balance
15/10/17
PAYG Instalment Paid
15/12/17
2016/17 Tax Refund Received
12/03/18
Fully Franked Dividend Received
08/05/18
Fully Franked Dividend Paid
Note - the benchmark franking percentage is 100%.
Required: Prepare the franking account for the 2017/18 tax year.
Date
Transaction
Debit
1/7/17
Opening Balance
15/10/17
PAYG Instalment Paid
15/12/17
2016/17 Tax Refund Received
Fully Franked Dividend Received
12/03/18
35,000 x 30/70
Fully Franked Dividend Paid
7,000 x 30/70
9,500
3,000
Credit
14,000
15,000
Nil
14,000
9,500
3,500
7,000
Balance
(State If Dr
Or Cr)
14,000 CR
4,500 CR
6,000 CR
3,000 CR
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Transcribed Image Text:Q5. (Franking Account) Rudimentary Pty Ltd, a corporate tax entity, has the following transactions for the 2017/18 tax year: Date Transaction $ 30/06/17 Balance 15/10/17 PAYG Instalment Paid 15/12/17 2016/17 Tax Refund Received 12/03/18 Fully Franked Dividend Received 08/05/18 Fully Franked Dividend Paid Note - the benchmark franking percentage is 100%. Required: Prepare the franking account for the 2017/18 tax year. Date Transaction Debit 1/7/17 Opening Balance 15/10/17 PAYG Instalment Paid 15/12/17 2016/17 Tax Refund Received Fully Franked Dividend Received 12/03/18 35,000 x 30/70 Fully Franked Dividend Paid 7,000 x 30/70 9,500 3,000 Credit 14,000 15,000 Nil 14,000 9,500 3,500 7,000 Balance (State If Dr Or Cr) 14,000 CR 4,500 CR 6,000 CR 3,000 CR
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