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question 193 of the bpp kit 2016-2017 states that there is a credit balance of 2600 on deferred tax at 31 MARCH 2006. therefore, I guess that this figure should be the non-current liability as at 31 MARCH 2006. however there is also a line which says that there is a deferred tax provision pf 6750 as at 31 MARCH 2006, meaning that this figure should also be the non-current liability as at 31 MARCH 2006. how come that’s possible that the credit balance on deferred tax becomes the balance B/F as at 1st april 2005? it should be the closing balance at 31 march 2006 and be shown as a non current liability as at that year. am 1 supposed to treat the balance as bal b/f as at 1st april 2005? however,i think that the trial balance figures are as at 31 march 2006. I am confused. does the trial balance show the balances of items at the start of the year or at the end of the year? may you clear my confusion?
I do not have the BPP material – can you give me the name of the question and I’ll try to find it on the internet?
The only alternative is to type out the question relevant parts
The TB of Highwood at 31 March 20X6 showed credit balances of $800,000 on current tax and $2.6
million on deferred tax. A property was revalued during the year giving rise to deferred tax of $3.75 million.
This has been included in the deferred tax provision of $6.75 million at 31 March 20X6.
The income tax charge for the year ended 31 March 20X6 is estimated at $19.4 million.
What will be shown as the income tax charge in the statement of profit or loss of Highwood at
31 March 20X6?
$
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