1) The estimate of current tax made by Boo Ltd for the year ended 31 December 2019 was £15,000 different from the actual tax liability. This resulted in a debit balance in the trial balance at 31 December 2020. The current tax liability for the year to 31 December 2020 is estimated to be £275,000. What is the current tax expense in the statement of profit or loss for the year ended 31 December 2020? a) £15,000 b) £290,000 c) £275,000 d) £260,000
1) The estimate of current tax made by Boo Ltd for the year ended 31 December
2019 was £15,000 different from the actual tax liability. This resulted in a debit
balance in the
The current tax liability for the year to 31 December 2020 is estimated to be
£275,000.
What is the current tax expense in the statement of profit or loss for the year
ended 31 December 2020?
a) £15,000
b) £290,000
c) £275,000
d) £260,000
2) A company’s trade payables days and trade receivables days are 60 days
and 30 days, respectively.
The sales and purchase information for the year was as follows:
Sales Purchases
£m £m
Cash 27 10
Credit 35 18
Total 62 28
What was the trade receivables and trade payables balances at the year end?
a) £5.10m and £4.60m
b) £2.21m and £1.64m
c) £5.75m and £1.48m
d) £2.88m and £2.96m
Please solve question 1 and 2
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