Advanced AccountingQuestion 5271 of 305
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5. What would be the value of the Deferred Tax Assets as on 31-03-2024?

Options

A` 1,52,000
B` 3,30,000
C` 1,23,600
D` 4,50,000
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Correct Answer

✅ Option C — ` 1,23,600

All Options:

  • A` 1,52,000
  • B` 3,30,000
  • C` 1,23,600 ✓
  • D` 4,50,000

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Detailed Solution & Explanation

To calculate the value of the Deferred Tax Assets (DTA) as on 31st March, 2024:
1. Opening DTA as on 1st April, 2023 is ‘ 1,20,000\displaystyle `\,1,20,000.
2. Employer PF contribution of ‘ 82,000\displaystyle `\,82,000 disallowed in 2022-23 (which created a DTA of ‘ 82,000×20%=‘ 16,400\displaystyle `\,82,000 \times 20\% = `\,16,400) is allowed in 2023-24. This reverses DTA by ‘ 16,400\displaystyle `\,16,400.
3. Unamortized preliminary expenses in tax records are ‘ 1,00,000\displaystyle `\,1,00,000 (with carrying amount in books being nil as they are written off), which creates a DTA of:
DTA Created=‘ 1,00,000×20%=‘ 20,000\text{DTA Created} = `\,1,00,000 \times 20\% = `\,20,0004. Closing DTA is calculated as:
Closing DTA=Opening DTA−DTA Reversed+DTA Created\text{Closing DTA} = \text{Opening DTA} - \text{DTA Reversed} + \text{DTA Created}Closing DTA=‘ 1,20,000−‘ 16,400+‘ 20,000=‘ 1,23,600\text{Closing DTA} = `\,1,20,000 - `\,16,400 + `\,20,000 = `\,1,23,600
Hence, **Option C** is the correct answer.

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