Deferred Tax Journal Entries

anthony_12c Registered Posts: 40 Regular contributor ⭐
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
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.

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