Day: August 22, 2024

Alex plc is preparing its financial statements for the year ending 31 March 2024.

The initial trial balance has the following figures relating to tax:

Tax payable as at 1 April 2023 £14,300
Tax paid during the year ended 31 March 2024 £12,700

The estimated tax liability for the year ended 31 March 20247 is £15,600.

The figure for tax expense in Alex plc’s income statement will be?

Select ONE answer:

1. £12,700
2. £14,000
3. £17,200
4. £28,300

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Notcorrect
2. Correct ==> Dr Cash £12,700 + Dr C/D Tax Liability £15,600 = Cr B/D Balance £14,400 + Income Statement (Bal Fig) £14,000
3. Not correct
4. Not correct

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