Journal Entries Flashcards
corporation tax has been estimated at £22,000,000 based on the years profit
DR Corporation Tax (SCI)
CR Corporation Tax (SFP)
Auditors’ fees of £85,000 are to be accrued.
DR Admin Cost
CR Accruals
The company pays its annual insurance premiums in full on the 1st January
every year. This year’s payment was for £64,000.
DR Prepayments
CR Admin Cost
Corporation tax has been estimated to be £8,600,000 based on the
year’s profit. £28,000 is to be transferred to the deferred tax account,
representing the excess of capital allowances over depreciation charges.
DR Corporation Tax (SCI)
CR Corporation Tax (SFP)
DR Corporation Tax (SCI)
CR Deferred Tax
The 10% debenture loan notes were in issue throughout the year.
DR Finance Cost
CR Accruals
Being debenture interest due at the year-end
The accountant has decided that the amount included in trade receivables
relating to FPB plc (£200,000) should be written off as the company has
gone into liquidation.
DR Admin Costs
CR Trade Receivables
Being bad debt written off
She also considers a general irrecoverable debt
allowance of 5% of the remaining trade receivables will be required.
DR Admin Costs
CR Allowance for irrecoverable debts
Being adjustment to bring in allowance
Inventory at
31/03/2017
was estimated to be worth
£190,000
DR Inventory
CR COS
Being closing inventory at year end
Auditors’ fees of
£10,000
have been prepaid.
DR Prepayments
CR Expenses
Being auditors fees prepaid
Corporation tax on the list of balances represents an over-provision from the previous year.
DR Corporation Tax
CR Corporation Tax (SCI)
Being adjustment for last year’s over-provision
