how do i show prepaid expense on current taxation workheet?

Question

lets say accounting profit of $20000, insurance expense of $10000, prepaid expense included is $5000. What Should I add and deduct then? How about a sales proceeds from sale of plant of $3000?

Answer 1

Proceeds from sale of plant is capital gains, if you are a sole trader or partnership, this goes on your personal tax return.

As for prepaid, you need to work out which part of it applies to the past financial year. Say you paid it in January for the year, $2500 applies to one financial year and $2500 is another.

If in doubt, speak to a tax consultant.