Exercise $13\mathrm{.}16$

Calculation of movements in deferred tax accounts

The statement of financial position of Tapu Ltd at $30$ June $2024$ showed the following assets and liabilities.

Additional information

$$ Accumulated depreciation of plant for tax purposes was $$157500$ at $30$ June $2023,$ and depreciation for tax purposes for the year ended $30$ June $2024$ amounted to $$37500.$

$$ The income tax rate is $30\%.$

Required

Prepare a deferred tax worksheet for Tapu Ltd to calculate the end of reporting period adjustment to deferred tax asset and liability accounts as at $30$ June $2024,$ and show the necessary journal entry at $30$ June $2024$ to recognise that adjustment.

Please show working out The answer is Deferred tax asset Dr $16500$

Deferred tax liability Cr $12000$

Income tax expense $($deferred$)$ Cr $4500$