Unit 1: May 2009, Question#3

ACCOUNTING LYCEUM

Unit 1: May 2009, Question#3

2/5/2018

7 Comments

1. Calculation of income tax paid during 2007-2008.

Alternatively a ledger account can be prepared to calculate the amount of income tax that was paid during the year:

The Statement of Cash Flows for the year ended 31st March, 2008, can now be prepared.

I hope that you found this proposed solution helpful! If you did please share it! Also, free to ask any questions or to make your comments below. Good Luck!

7 Comments

Makellah

4/12/2019 08:08:42 pm

Could you please do more past papers and give the answers cause i am struggling and CAPE is in a few weeks.

ASR

11/28/2019 11:28:11 am

Where did you get the $34000 to add to the net income for the total

Krystal

11/28/2019 05:30:00 pm

Hi ASR,

This was a typo! Thanks so much for spotting it! The $34,000 should have been $35,000 and it represents the interest expense that was deducted in the Income Statement. Because the Cashflow Statement begins with profit before interest and tax, the interest that was deducted has to be added back on and vice versa.

Hope this helps and sorry for any confusion this may have caused you!

Best of luck!

ASR

11/28/2019 05:33:50 pm

Okay, thank you so much

Krystal

11/28/2019 05:51:04 pm

You are most welcome!

Ayanna

4/13/2021 11:24:08 am

Hi pleasant good day ,
why wasn`t the bank loan under the current liabilities section of the balance sheet added to the operating section of the SOCF?

Krystal

4/15/2021 09:45:48 am

Hi Ayanna,

Thanks for taking the time to post your question.

An incomplete version of the solution was uploaded in error.

This has been amended. Sorry for any confusion this may have caused you.

Best of luck to you!

Your comment will be posted after it is approved.

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Unit 1: May 2009, Question#3

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