Company ABC

Depreciation Schedule
Profit & Loss Depreciation Rates Depreciation Amount
Asset Purchase Value
Item Amount Accounting Tax Accounting Tax
Revenue 150,000 Buildings 200,000 1.63% 10.00% 3,260 20,000
Operating Expenses 75,000 Plant & Machinery 150,000 4.75% 25.00% 7,125 37,500
EBITDA* 75,000 Total 350,000 10,385 57,500
Derpeciation 10,385
EBIT** 64,615 Tax Calculation Accounting Tax The Accounting P&L should reflect the
Interest 0 EBITDA 75,000 75,000 total tax as 21,904 but the actual tax
EBT*** 64,615 Depreciation 10,385 57,500 payable is 5,933. The difference
between the two tax amounts is the
Deferred Tax - A 15,971 EBIT 64,615 17,500
Deferred Tax and the P&L on the right
Current Tax - B 5,933 Interest 0 0
would contain two lines deferred tax (A)
Total Tax = A+B 21,904 EBT 64,615 17,500 and current tax (B). Current Tax is the
Profit After Tax (PAT) 42,711 Tax Expense @ 33.9% 21,904 5,933 actual tax payable

Simple Balance Sheet

Assets Amount Liabilities Amount

Cash 69,067 Capital 350,000
Gross Fixed Assets 350,000 Retained Earnings (P&L Account) 42,711
(-) Depreciation 10,385 Deferred Tax Liability 15,971
Net Fixed Assets 339,615
Total Assets 408,682 Total Liabilities 408,682