Question

Peter Limited has the following balances included on its trial balance at June 30, 2020:

Current tax	$ 4,000 CR
Deferred tax	$ 12,000 CR

• The balance on the Current Tax relates to an overprovision from June 30, 2019.

• On June 30, 2020, the directors estimate that the provision necessary for taxation on current year profits is $15,000.

• The carrying amount of Peter's non-current assets exceeds the tax written down value (tax base) by $30,000. The rate of tax is 30%.

Required:

For the year ended June 30, 2020, prepare:

1. Current Tax account

2. Deferred Tax account

3. Income Statement and Balance Sheet extracts