Home For AAT student members AQ 2013 AAT Level 4 (Level 8 in Scotland)
Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

Please check this link for the latest updates:
We hope you are all safe and well and if you need us we will be here. 💚


Deferred Tax Journal Entries

anthony_12canthony_12c Feels At HomeRegistered Posts: 40
Hi can someone help with the journal entries for deferred tax on assets and losses;

Basic Deferred tax calc on cap allowances;

NBV of FA £12,000
WDV BF £0
£12,000
At 20% £2,400
Def Tax BF £0
Def Tax Asset £2,400

DR P&L (tax timing differences)
CR BS (movement on CA deferred tax)


Def Tax on Losses

Tax Losses CF £30,000
at 20% £6,000
Losses BF £0
Def Tax Losses £6,000

DR BS (movemet on def tax losses)
CR P&L (tax timing differences)



Are the journal entries correct or am i way off?

Anything i could refer to to improve my understanding of deferred tax would be welcomed.









Sign In or Register to comment.