The Following Information Was Extracted from the Financial Records of Pamakari

question 3

Multiple Choice

The following information was extracted from the financial records of Pamakari Limited: Equipment purchased on 1 July 2014 for $100 000 (accounting depreciation 10% straight line tax depreciation 20% straight line) . If the company tax rate is 30%, the deferred tax item that will be recorded by Pamakari Limited at 30 June 2015 is:

• A) debit Deferred tax asset $3000
• B) credit Deferred tax asset $3000
• C) debit Deferred tax liability $3000
• D) credit Deferred tax liability $3000.

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Definitions:

Journal Entry

is a record in accounting that represents the recording of a financial transaction, comprising debit and credit entries.

Disbursed Accounts

These are accounts from which funds have been paid out or disbursed, typically to settle obligations or expenses.

Petty Cash Fund

A minimal sum of money maintained for the purpose of covering various minor expenditures on the spot.

Journal Entry

A record in accounting that represents a transaction and its impact on various accounts, used to track financial activities.