Determine the current tax and deffered tax expense

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The following information relates to diamond limited (DL) a listed company which was incorporated on January, 1 ,2018.

i) the profit before taxation for the years ended December 31, 2019 and 2018 amounted to (RS.25 million ) and Rs.30 million respectivey.

ii) the details of accounting and tax depreciation on fixed assets is as follows.

                                          2019             2018

                                             RS. IN MILLION

Accounting depreciation              15           15

tax depreciation                            6         45

iii) DL earned interest on special interest bonds amounting to RS. 1.0 million and RS.1.25 million in the years 2018 and 2019 respectively.

this income is exempted from tax

vi) tax rate applicable is 31%

required :

Question 1) Determine the current tax and deffered tax expense for the year 2018 and 2019. ignore minimum turnover tax.

Question 2) Journal entries related to tax only for the year 2018 and 2019.

Reference no: EM132563947

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