Income and expenses 

Toni Fernadez will start a pension on the 15/05/2018. All transactions have been recorded to the date of pension commencement. Ensure when starting a pension you have matched or entered all transactions, and that nothing is left outstanding in all clearing or suspense accounts.

Tax Effect Accounting

Tax-effect accounting creates a capital gains tax provision for investments that have increased or decreased in value , but have not yet been sold. The Create Entries process calculates timing differences on unrealised capital gains , and posts an entry to the 89000 Deferred Tax Liability Account.

The Pension  Training Fund does not account for provisions . We and we will ignore the writeback of PDIT. For further details on how to writeback PDIT, refer to Unit 5 - Task 1. 

Create Entries to Update Member Balance

To value assets at the commencement date of the income stream, create entries needs to be run the day before the pension starts in Simple Fund 360. 

Instructions

Toni Fernadez will start a pension on the 15/05/2018. The Create Entries process needs to be run on the 14/05/2018.

Follow these steps to complete the part year Create Entries:

1. Input the Create Entries Period as 01/07/2017 to 14/05/2018.
   
   

2.  Select Create Entries.