Company financial statements Flashcards
1
Q
When a tax liability arises and is identified, what is the double entry?
A
Dr tax expense (P/L)
Cr tax payable
2
Q
When a tax payable payment what is the double entry?
A
Dr tax payable
Cr cash
3
Q
What is the double entry for an overprovision from previous year
A
Dr tax payable
Cr tax expense
4
Q
What is the double entry for an underprovision from the previous year
A
Dr tax expense
Cr tax payable
5
Q
What is a provision?
A
A liability of uncertain timing or amount
6
Q
Double entry to create a provision
A
Dr expense (P/L)
Cr provision (current liabilities)
7
Q
Double entry to incur expenditure
Provision
A
Dr expense (P/L)
Dr provision (current liabilities)
Cr cash at bank
