Mini exercises Chap 12 - Taxa Quest nr 2

In order to get the correct charge to the statement of profit of loss (correct CHARGE, not correct liability) we need to take into account that we already had $400 credit balance brought forward in the current tax account. As a result of the deferred tax adjustment, we no longer need $11,200 in the deferred tax account - we only need $10,000 - so the excess of $1,200 can be credited back to the current tax account. That means that, whereas we were anticipating charging statement of profit or loss with $18,700 by crediting the current tax account, we already find $400 and $1,200 in the credit side of that account. So now we only need $17,100 credit to the current tax account and debit / charge the statement of profit or loss by that amount OK?

It's not a big deal! I had to show the entry to get 1,200 out of deferred tax and into Current Tax. The first 5 mini exercises were done before the remainder. Throughout the remainder (I believe) I have consistently done the transfer by naming the accounts Deferred Tax and Current Tax In this question, I have taken the credit to SoCI instead of Current Tax Thanks for pointing it out