Frusino Limited presents the following balances in its financial statements for the years ended 28 February 2019 and 28 February 2018:
$\begin{array}{lcc}
& 2019 & 2018 \
& £ & £ \
\text { Income tax liability at the year end } & 35,747 & 38,219 \
\begin{array}{l}
\text { Statement of profit or loss income tax } \
\text { charge }
\end{array} & 34,846 & 37,304
\end{array}$ Based on these figures, what was the cash paid for taxation that will appear in the statement of cash flows of Frusino Limited for the financial year ended 28 February 2019?

Question

Frusino Limited presents the following balances in its financial statements for the years ended 28 February 2019 and 28 February 2018:
$\begin{array}{lcc} 
& 2019 & 2018 \
& £ & £ \
\text { Income tax liability at the year end } & 35,747 & 38,219 \
\begin{array}{l}
\text { Statement of profit or loss income tax } \
\text { charge }
\end{array} & 34,846 & 37,304
\end{array}$ Based on these figures, what was the cash paid for taxation that will appear in the statement of cash flows of Frusino Limited for the financial year ended 28 February 2019?

Quizplus · Accepted Answer

The cash paid for taxation is calculated as: Opening tax liability (£38,219) + Income tax charge (£34,846) - Closing tax liability (£35,747) = £37,318.

Frusino Limited Presents the Following Balances in Its Financial Statements