Question 5: Otlay Ltd prepares accounts to 31 July each year. The company's financial statements for the year to 31 July 2015 showed a liability for current tax of 120,000. This was an estimate of the current tax due for the year to 31 July 2015. The following information is also available: (a) The current tax due for the year to 31 July 2015 was finally agreed with the tax authorities to be 127,000 and this sum was paid on 1 May 2016. (b) The company estimates the amount of current tax due for the year to 31 July 2016 to be 140,000. Required: Prepare a current tax ledger account for the year to 31 July 2016, showing the amount of the current tax expense for that year and the amount of the current tax liability as at the end of the year.