ACCA FR Syllabus D. Preparation Of Financial Statements - Cashflow statement - taxation - Notes 5 / 9
Cashflow statement - How to find Tax PAID
| Income Statement | |
| Taxation | 80 |
| Statement of Financial Position | X2 | X1 |
| Current tax Payable | 100 | 140 |
| Deferred tax Payable | 50 | 80 |
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Solution
| Opening Payable (from SFP) | 220 |
| Income statement figure for year | 80 |
| Cash paid (balancing figure) | (150) |
| Closing Payable (from SFP) | 150 |
Taxation costs of 150 paid go to the operating activities section of the cashflow statement.