A debit balance appearing on the Trial Balance as taxation has been identified as the under-provision for tax relating to the previous year’s profit. This amount should be included in the current year’s financial statements of a company as:

(a) Part of administrative expenses in the Statement of income

(b) Part of the tax expense reported in the current year’s Statement of income

(c) A deduction from the subtotal of Equity and reserves on the Statement of financial position

(d) A deduction from Retained earnings brought forward, in the Statement of changes in equity