Meldrum Pty Limited (a private company) had the following transactions in relation to itsfranking account:DateDetailsAmount1 July 20186 Sept 20187 Sept 20189 Sept 20182 Oct 2018Opening balanceReceived a fully franked dividend from BHP Limited$2,000$49,000$25,000$56,000$6,000$49,000$5,000$56,000$6,000$50,000$42,000Paid Goods and Service TaxPaid a dividend franked to 50%Paid income tax instalmentReceived a refund of income tax11 Nov 20187 Feb 2019Paid income tax instalment14 Mar 2019Paid a dividend fully franked8 April 20193 May 2019Paid income tax instalmentPaid fringe benefits taxPaid a dividend 30% franked15 June 2019Required:a) What is the closing balance of the franking account on 30 June 2019?b) What are the consequences of the closing balance of the franking account?c) What other tax consequences are there for Meldrum Pty Limited?

The type of ledger account or statement which records only the amount related to tax is known as…

Required: a) What is the closing balance of the franking account on 30 June 2019? 5) What are the consequences of the closing balance of the franking account? -- What other tax consequences are there for Meldrum Pty Limited?

Required: a) What is the closing balance of the franking account on 30 June 2019? 5) What are the consequences of the closing balance of the franking account? -- What other tax consequences are there for Meldrum Pty Limited?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Meldrum Pty Limited (a private company) had the following transactions in relation to its
franking account:
Date
Details
Amount
1 July 2018
6 Sept 2018
7 Sept 2018
9 Sept 2018
2 Oct 2018
Opening balance
Received a fully franked dividend from BHP Limited
$2,000
$49,000
$25,000
$56,000
$6,000
$49,000
$5,000
$56,000
$6,000
$50,000
$42,000
Paid Goods and Service Tax
Paid a dividend franked to 50%
Paid income tax instalment
Received a refund of income tax
11 Nov 2018
7 Feb 2019
Paid income tax instalment
14 Mar 2019
Paid a dividend fully franked
8 April 2019
3 May 2019
Paid income tax instalment
Paid fringe benefits tax
Paid a dividend 30% franked
15 June 2019
Required:
a) What is the closing balance of the franking account on 30 June 2019?
b) What are the consequences of the closing balance of the franking account?
c) What other tax consequences are there for Meldrum Pty Limited?

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