b) A company commenced business on 1 January 2021. On 31 December 2021. an extract of the balance sheet prepared for int

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B A Company Commenced Business On 1 January 2021 On 31 December 2021 An Extract Of The Balance Sheet Prepared For Int 1 (32.41 KiB) Viewed 28 times

b) A company commenced business on 1 January 2021. On 31 December 2021. an extract of the balance sheet prepared for interal purposes, but excluding the effect of income tax, disclosed the following information: Assets RM Lia balities & Equity RM Bank 40,000 Accounts payable 80.000 Tavestory 100.000 Long service leave 5.000 Trade Debtors 279.000 Retained profits 227.500 Plant & Equipment 300.000 Share Capital 500,000 Accumulated Depreciation (30.000) Software Development cost 90.000 Prepaid Insurance 30.000 Rent Receivable 3,500 812,500 812,500 Additional information: 1) The plant was acquired on 1 January 2021. Depreciation for accounting purposes was 10% (straight-line method), while 25% (straight-line) was used for tas purposes. ii) Trade Debtors are after providing for doubtful debts amounting to RM10.000. 1) For accounting purposes, the costs of software developusent is treated as an intangible asset. For tas purposes, it is deductible in the year incuted. IV) The income tax rate is 20% Required: Prepare the deferred tax worksheet at 31 December 2021 and record the journal entry for Deferred Tax Asset and Deferred Tas Liability for the curent financial year. (18 marks)