Compute the deferred tax charge for the year ended 31 March 2001 on: 1. Full-provision basis 2. Partial-provision basis

      

Baobab Ltd. was incorporated on 1 April 2000. In the year ended 31 March 2001, the company made a profit before taxation of Sh.10,000,000 (depreciation charged being Sh.1,000,000). The company had made the following capital additions:
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Compute the deferred tax charge for the year ended 31 March 2001 on:
1. Full-provision basis
2. Partial-provision basis
(Show the profit and loss account and balance sheet extracts with respect to the provisions under each method).

  

Answers


Wilfred
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Wilfykil answered the question on February 8, 2019 at 07:42


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