Acca financial Accounting (FA) Study Text ac ca (FA)

Test your understanding 7 

Garry Baldy Co commenced trade on 1 January 20X4 and estimated that 

the tax payable for the year ended 31 December 20X4 was $150,000. 

In September 20X5, the accountant of Garry Baldy Co received and paid 

a tax demand for $163,000 for the year ended 31 December 20X4. At 

31 December 20X5 he estimated that Garry Baldy Co owed $165,000 for 

income tax in relation to the year ended 31 December 20X5. 

Draw up the tax charge and income tax payable accounts for the 

years ended 31 December 20X4 and 20X5 and detail the amounts 

shown in the statement of financial position and statement of profit 

or loss in both years. 

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Capital structure and finance costs 

232

 

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