Calculate the taxable profit and accounting profit for the year ending 30 June 2019.
A. You are provided with the following information form the accounts of BBS Ltd for the year ending 30 June 2019
Cash Sales
950 000
Cost of Goods Sold
35 000
Amount received in advance for services to be performed in August 2019
9 500
Rent expenses for year ended 30 June 2019
9 000
Rent Prepaid for two months to 31 August 2019
1 200
Doubtful debts expenses
1 200
Amount provided in 2019 for employees’ long-service leave entitlements
5 000
7 000
Required:
Calculate the taxable profit and accounting profit for the year ending 30 June 2019.
B. GYV Ltd has the following
The above balances were calculated when the tax rate, was 20 per cent. On 1 December 2019 the government raises the corporate tax rate to 25 per cent.
Required:
Provide the
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
