Page 318 - FR Integrated Workbook 2018-19

Chapter 22

Illustration 1 cont.

Method 2 – Column

$
Balances b/f (820 + 400) 1,220

SPL: income tax expense 980
Balances c/f (900 + 440) (1,340)

———
Tax paid 860

———
Method 3 – Column with balancing figure

$

Balances b/f (820 + 400) 1,220
SPL: income tax expense 980

Tax paid (balance) (860)
———

Balances c/f (900 + 440) 1,340
———

It can be seen that all three methods are in essence the same calculation, so
it is a matter of personal preference as to which you choose to use.

312