Calculate the Current and Deferred Taxation

Question description

The profit before tax of Caneland Limited for the year ended 29th February 2012 is R200 000. Included in this amounts are the following:
Capital profits on Sale of Land (Taxable capital gain: Nil) 50 000
Donations (not deductible) 30 000
• Expenses prepaid of R40 000 were correctly accounted for. These expenses are allowed as a deduction for tax purposes in 2012.
• There are no other differences between accounting profit and taxable profit other than those evident from the information given.
• There are no transactions that affects the current tax payable/receivable account.
• There are no components of other comprehensive income.
• The assumed tax rate is 30%.
3.1 Calculate the Current and Deferred Taxation for 2012.
3.2 Prepare the Taxation Expense Note.
3.3 Prepare extracts from the Statement of Comprehensive Income for the year ended 29 February 2012. Comparatives and notes are not required.

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