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Hi Mike.I want to ask with regard to question three in practise questions.
I said:
Debit Credit
C.T 800000:Opening balance C.T 19 400 000:Current tax payable
400000:Transferred from D.T
18200000:P/LAnd in Deferred.Tax Debit Credit
2600000:Opening balance
375000 :Deferred tax that arose
375000:By provision
2600000:Opening balance
400000 c/f(left from provision}The account was zero.And there was $400 000 dollars left on the Debit side of D.tax.
Now my answer 18200000 is not there.Idid not understand your workings below practise questions number3.Deferred Tax debits: 6,750,000
Deferred Tax credits: 2,600,000; 3,750,000; 400,000
Current Tax debits: 400,000; 19,400,000
Current Tax credits: 800,000
That leaves a missing figure of 19,000,000 on the credit side representing this year’s charge for taxation debited to the statement of profit or loss
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