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20X1: Rs. 3,000 is disallowed but Rs. 4,500 is allowed instead. = taxable expense is Rs. 1,500 greater than the accounting expense. =taxable profit is Rs. 1,500 less than accounting profit. = current tax is reduced by 30% of Rs. 1,500 (Rs. 450). deferred tax expense of Rs. 450 must be recognised to restore the balance (Dr: Tax expense / Cr: Deferred taxation liability). 20X2: Rs. 3,000 is disallowed but Rs. 2,500 is allowed instead. = taxable expense is Rs. 500 less than the accounting expense. =taxable profit is Rs. 500 more than accounting profit. =current tax is increased by 30% of Rs. 500 (Rs. 150). =deferred tax credit of Rs. 150 must be recognised to restore the balance (Dr: Deferred taxation liability / Cr: Tax expense). 20X3: Rs. 3,000 is disallowed but Rs. 2,000 is allowed instead. = taxable expense is Rs. 1,000 less than the accounting expense. =taxable profit is Rs. 1,000 more than accounting profit. = current tax is increased by 30% of Rs. 1,000 (Rs. 300). > deferred tax credit of Rs. 300 must be recognised to restore the balance (Dr: Deferred taxation liability / Cr: Tax expense). 20X1: Rs. 3,000 is disallowed but Rs. 4,500 is allowed instead. = taxable expense is Rs. 1,500 greater than the accounting expense. =taxable profit is Rs. 1,500 less than accounting profit. = current tax is reduced by 30% of Rs. 1,500 (Rs. 450). deferred tax expense of Rs. 450 must be recognised to restore the balance (Dr: Tax expense / Cr: Deferred taxation liability). 20X2: Rs. 3,000 is disallowed but Rs. 2,500 is allowed instead. = taxable expense is Rs. 500 less than the accounting expense. =taxable profit is Rs. 500 more than accounting profit. =current tax is increased by 30% of Rs. 500 (Rs. 150). =deferred tax credit of Rs. 150 must be recognised to restore the balance (Dr: Deferred taxation liability / Cr: Tax expense). 20X3: Rs. 3,000 is disallowed but Rs. 2,000 is allowed instead. = taxable expense is Rs. 1,000 less than the accounting expense. =taxable profit is Rs. 1,000 more than accounting profit. = current tax is increased by 30% of Rs. 1,000 (Rs. 300). > deferred tax credit of Rs. 300 must be recognised to restore the balance (Dr: Deferred taxation liability / Cr: Tax expense)