Advanced AccountingQuestion 5273 of 305
All Questions

7. What would be the value of reversal of Deferred Tax Assets as on 31-03-2024?

Options

A` 20,000
B` 1,04,000
C` 16,400
D` 90,000
For any discrepancies in this question, email contact@cadada.in

Correct Answer

Option C` 16,400

All Options:

  • A` 20,000
  • B` 1,04,000
  • C` 16,400
  • D` 90,000

Ad

Detailed Solution & Explanation

To determine the value of reversal of Deferred Tax Assets (DTA) as on 31st March, 2024:
1. The Employer PF Contribution of 82,000\displaystyle `\,82,000 which was disallowed in 2022-23 (creating a DTA of 82,000×20%=16,400\displaystyle `\,82,000 \times 20\% = `\,16,400) is allowed in 2023-24.
2. Because it is allowed in the current year, the timing difference reverses.
3. The DTA reversed is:
DTA Reversed=82,00,00×20%=16,400\text{DTA Reversed} = `\,82,00,00 \times 20\% = `\,16,400
Hence, **Option C** is the correct answer.

More Questions from Advanced Accounting

Ready to Master Advanced Accounting?

Practice all 305 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.

Start Practicing — It's Free