Meldrum Pty Limited (a private company) had the following transactions in relation to its franking account: DateDetailsAmount1 July 2018Opening balance$2,0006 Sept 2018Received a fully franked dividend from BHP Limited$49,0007 Sept 2018Paid Goods and Service Tax$25,0009 Sept 2018Paid a dividend franked to 50%$56,0002 Oct 2018Paid income tax instalment$6,00011 Nov 2018Received a refund of income tax$49,0007 Feb 2019Paid income tax instalment$5,00014 Mar 2019Paid a dividend fully franked$56,0008 April 2019Paid income tax instalment$6,0003 May 2019Paid fringe benefits tax$50,00015 June 2019Paid a dividend 30% franked$42,000Required: (a)What is the closing balance of the franking account on 30 June 2019? (b)What are the consequences of the closing balance of the franking account? (c)What other tax consequences are there for Meldrum Pty Ltd?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Meldrum Pty Limited (a private company) had the following transactions in relation to its franking account: DateDetailsAmount1 July 2018Opening balance$2,0006 Sept 2018Received a fully franked dividend from BHP Limited$49,0007 Sept 2018Paid Goods and Service Tax$25,0009 Sept 2018Paid a dividend franked to 50%$56,0002 Oct 2018Paid income tax instalment$6,00011 Nov 2018Received a refund of income tax$49,0007 Feb 2019Paid income tax instalment$5,00014 Mar 2019Paid a dividend fully franked$56,0008 April 2019Paid income tax instalment$6,0003 May 2019Paid fringe benefits tax$50,00015 June 2019Paid a dividend 30% franked$42,000Required: (a)What is the closing balance of the franking account on 30 June 2019? (b)What are the consequences of the closing balance of the franking account? (c)What other tax consequences are there for Meldrum Pty Ltd?
 
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