XYZ is a company incorporated in Cambodia since 2012. XYZ purchases and sells goods to local customers and distributers. Under the tax regulations, XYZ is required to calculate and pay annual Tax on Profit. The following extracts for equity, liability, sales, profit and costs of goods sold have been provided by XYZ’s accountant in relation to the tax year ended 31 December 2016.
– Profit / (loss) brought forward from 2012 to 2015 is $70,000.
– Current profit in 2016 is $10,000.
– XYZ owes Mr. David $20,000 payable on 30 November 2018, and Mr. David is a shareholder among
shareholders of XYZ.
– On 1 February 2016, Company borrows $30,000 from local bank in Cambodia, and repayment is on 1
February 2017.
– On 30 November 2016, XYZ wants to expand its business nationwide, so management decided to borrow
more fund from overseas bank $100,000. The amount $10,000 out of $100,000 will be paid on 30
November 2017.
– During the year, company purchased goods from AZC $7,000 on credit.
– Electricity and water supply expenses are accrued on 31 December 2016 are $2,000, and invoices of
these expenses are issued on 5 January 2017.
– VAT (value added tax) payable to tax authority is $3,000 for 31 December 2016.
– Salary tax payable to tax authority is $1,000 for December 31 December 2016.
– Sales are $100,000 during the year 2016.
– Costs of goods are S60, 000 for the year 2016.
Required:
Prepare extract balance sheet and income statement which are completed and complied with tax form requirement as follows:
- Components of Balance sheet are from A27 to A50 if any.
- Components of income statement are from B0 to B6 if any.
Answer
