5. Componies-franking account (comprehensive) Simple Pty Ltd, a corporate tax en

Question

5. Componies-franking account (comprehensive) Simple Pty Ltd, a corporate tax entity, has the following transactions for the 2015/16 tax year: Date 30/06/2015 12/07/2015 Transaction 4,200 4,200 21/07/2015 20/08/2015 15/10/2015 01/12/2015 15/01/2016 19/02/2016 Debit Balance Franking Deficit Tax Paid (from 2014/15 franking account) PAYG tax instalment Received Fully Franked Dividend PAYG tax instalment Refund of 2014/15 company tax Paid 80% Franked Dividend Received Dividend from South Africa ($3,000 tax withheld) Paid Unfranked Dividend 5,900 20,650 5,900 11,000 13,300 7,000 15/04/2016 7,750 Note-the benchmark franking percentage is 80%. The ATO has not been notified of any variation Required: a) Prepare the franking account for the 2015/16 tax year. b) Calculate any additional taxes payable

Explanation / Answer

In the books of Simply Pty Ltd Dr Cr Franking Account Date Particulars Amount Date Particulars Amount 30/06/2015 Balance B/F 4200 21/07/2015 By Pay G tax instalment 5900 12/07/2015 To cash 4200 15/10/2015 By Pay G tax instalment 5900 15/01/2016 to dividend account 13300 20/08/2015 By dividend account 20650 15/04/2016 To unfranked dividend 7750 01/12/2015 By Cash 11000 19/02/2016 By Cdividend 7000 To Balance C/F 21000 50450 50450

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