7/30/2019 ACCA P2 Deferred Tax Double Entry

1/1

YearCarrying Value

Cost- Accumulated

depreciation $

Tax BaseCost - Accumulated Capital

Allowances $

TempDifference $

3,000 2,400 600

2,000 1,200 800

1,000 480 520

nil nil nil

double entryfor deferred tax

Double Entry

1

2

DR Tax Expense (SOCI) $150

CR Deferred tax liability (SOFP) $150

DR Tax Expense (SOCI) $50

CR Deferred tax liability (SOFP) $50

3

4

DR Deferred tax liability (SOFP)

CR Tax Expense (SOCI)

DR Deferred tax liability (SOFP)

CR Tax Expense (SOCI)

1

2

3

4