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Hi Mike,
I’m having a problem understanding the logic behind current tax under/over provisions brought forward from previous periods. I don’t understand why the debit of current tax in TB represent under provision and vice versa.
Pls explain it for me,
Thank you in advance.First, let me ask you this …
Why on Earth do you want to know?
It is of NO relevance to you whatsoever
Do you still want to know? Or are you prepared to leave it?
If you’re told that ‘The debit figure in the trial balance for current tax is an over/under provision from last year’ then, when you open your deferred tax T account, that figure will go into the deferred tax account, debit side
I’ll explain it if you really want, but it is of no relevance in the exam situation
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