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  3. a company commenced business on 1 july 2023. on 30

A company commenced business on 1 July 2023. On 30 June 2024, an extract of...

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Accounting

A company commenced business on 1 July 2023. On 30 June 2024, an extract of the statement of financial position prepared for internal purposes, but excluding the effect of income tax, disclosed the following information: Assets Accounts Receivable 100,000 Allowance for doubtful debts (20,000) Plant 500,000 Accumulated depreciation (50,000) Liabilities Provision for annual leave 8,000 Additional information: The plant was acquired on 1 July 2023. Depreciation for accounting purposes was 10% (straight-line method), while 20% (straight-line) was used for tax purposes. The tax rate is 30%. Using the following worksheet, determine the deferred tax asset and deferred tax liability. (6.5 marks) What is the journal entry required? (1.5 marks)

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