Assignment 1

Accounting

Q1: OZ Ltd

OZ Ltd
General Journal
2019   Debit Credit
31-
Mar Call (Ordinary) 450,000  
  Share Capital (Ordinary)   450,000
  (Call of $1.50 on 300,000 ordinary shares)    
       
  Call (Preference) 200,000  
  Share Capital (Preference)   200,000
  (Call of $2 on 100,000 Preference shares)    
       
30-Jun Cash 640,000  
  Call (Ordinary)   450,000
  (Receipt on allotment of ordinary shares)    
       
  Call (Preference)   190,000
  (Receipt on allotment of 95,000 preference shares)    
     
     
  Share Capital (Preference) 20,000  
  Call (Preference)   10,000
  Forfeited Shares Liability   10,000
(Forfeiture of 5,000 preference shares
  over non-payment)    
     
30-Sep Cash 17,500  
  Forfeited Shares Liability 2,500  
  Share Capital (Preference)   20,000
(Reissue of 5,000 preference shares
  for $3.50, paid to $4)    
     
  Forfeited Shares Liability 720  
  Cash   720
  (Expense related to reissue)    
     
31-Oct Forfeited Shares Liability 6,780  
  Cash   6,780
  (Refund to shareholders)    
Q2: Mega Ltd
Current Tax

Current Tax Worksheet

(For the year ended 30 June 2019)
(Amount in $)  
Accounting Profit 900,000
Add:  
Parking & other fines 10,000  
Doubtful debts expenses 25,000  
Depreciation (Plant) 70,000  
Long service leave 36,000  
Interest received 20,000  
Amortization (Development asset) 50,000 211,000
   
Less:  
Bad debt written off 15,000  
Tax Depreciation (Plant) 100,000  
Development cost already paid 160,000  
Additional deduction for development cost 40,000  
interest revenue 10,000  
Long service paid leave 50,000 375,000
Taxable Profit   736,000
Current Tax Liability (30%)   220,800

Journal Entries
Current Tax
(For the year ended 30 June 2019)
(Amount in $) Debit Credit
Income Tax Expense 220,800  
Current Tax Liability   220,800
Deferred Tax
Deferred Tax Worksheet
(For the year ended 30 June 2019)
(Amount in $) Carrying Future Tax Base Taxable Deductible
Amount Deductible Temporary Temporary
Amount Differences Differences
Assets  
Accounts receivable (net) 225,00 245, 20,
-
(245000-20000) 0 000 000
Plant (net)
410,00 320, 90,0
(600000-190000=410000); 320,000  
(600000-280000=320000) 0 000 00
Development asset (net) 230,00 230,0
- -  
(360000-130000) 0 00
10,00 10,0
- -  
Interest receivable 0 00
   
Liabilities  
48,00 48,00 48,
Provision for LSL 0 0 000
Total Temporary 330,0 68,
     
Differences 00 000
   
99,0
Deferred tax liability 30%        
00
20,
Deferred tax asset 30%        
400
60,0 21,
Beginning balances 00 600
39,0
      -1,200
Increase/(Decrease) 00

Journal Entries
Deferred Tax
(For the year ended 30 June 2019)
(Amount in $) Debit Credit
Income Tax Expense 40,200  
Deferred Tax Liability   39,000
Deferred Tax Asset   1200