Acct 358 Tut

792 Words Apr 22nd, 2013 4 Pages
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ACCT 358
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Tutorial for Week Beginning 11 March 2013
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Tutorial: Company Taxation: Imputation, RWT/NRWT (continued) Dividend Imputation 1. SpannerWorks Limited is a closely held private company incorporated on 1 April 2001. Its share capital comprises $40,000 $1 ordinary shares fully paid and 10,000 15% preference shares fully paid to $1.00. SpannerWorks Limited has provided you with a list of the following tax transactions it has entered into. The opening balance of the ICA account as at 31 March 2011 was $1,500.
Imputation
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Imputation credits allocated are only 50% of the maximum allowable. | (l) | 7 May 2012 | SpannerWorks pays the 3rd instalment of 2012 provisional tax of $200. | (m) | 28 Aug. 2012 | SpannerWorks pays the 1st instalment of 2013 provisional tax of $200. | (n) | 10 Nov. 2012 | SpannerWorks receives a tax refund in respect of the 2010 income year. Refund per the return for the year ended 31 March 2010 was $3,600 (net of any UOMI). | (o) | 20 Dec. 2012 | SpannerWorks pays a dividend on ordinary shares of 12%. The maximum allowable ratio of imputation credits are allocated. | (p) | 15 Jan. 2013 | SpannerWorks pays the 2nd instalment of 2013 provisional tax of $400. | | | No other relevant transactions to 31 March 2013. |
REQUIRED:
(i) Complete the Imputation Credit Account entries for the above data, using the following format:

Date | Item | Debit | Credit | Balance | DR/CR | 1 Apr. 2011 | Opening balance | | | 1,500.00 | CR | 15 Apr. 2011 | | | | | | 7 May 2011 | | | | | | 28 Aug 2011 | | | | | | 7 Oct 2011 | | | | | | 10 Dec 2011 | | | | | | 15 Jan 2012 | | | | | | 7 Fev 2012 | | | | | | 2 Apr 2012 | | | | | | 2 Apr 2012 | | | | | | 15Apr 2012 | | | | | | 7 May 2012 | | | | | | 28 Aug 2012 | | | | | | 10 Nov 2012 | | | | | | 20 Dec 2012 | | | | | | 15 Jan 2012 | | | | | |
(ii) What action is required in view of the different ratio of…

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