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Tax Asset (Question no2) Cavern december 2007.

Nnaumaniqrar14y ago
In Trial Balance has Current tax of 900Dr and the tutior is treating as aseet.
Why tutor is treating it asset please explain with entries?
thanks in Advance.
This note (v) is in question no 2 CAVERN DECEMBER 2010 exam question i also listen the video lecture but i cant understand why tutor treat 900dr amount of current tax an asset.
MikeLittleMikeLittleTutor14y ago#1
Well, it's a debit balance and it's not an expense! I seem to remember that the question specifically stated that the tax figure in the trial balance represents an over / under payment from last year. So you tell me, is it an asset, or an expanse? Because it cannot be anything else!
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