Deferred Tax Liability / Asset Calculation
Deferred Tax Asset - (IT Depreciation Rate less then Companies Act Rate)
			Income Tax	Company Act
	Rate of Depreciation		IT 20%	Co. 30%
	Asset Value	100,000.00	20,000.00	30,000.00
	Profit before Depreciation		500,000.00	500,000.00
	Depreication		20,000.00	30,000.00
	Profit After depreciaiton		480,000.00	470,000.00
	Income Tax @ 30%		144,000.00	141,000.00
	FI Entry
	Tax Expenses as per Co.Act	Debit	141,000.00
	Deferred Tax Asset	Debit	3,000.00
	To Tax Payable as per IT	Credit		144,000.00
Deferred Tax Liability - (IT Depreciation Rate higher then Companies Act)
	Rate of Depreciation		IT 30%	Co. 20%
	Asset Value	100,000.00	30,000.00	20,000.00
			IT	Co.
	Profit before Depreciation		500,000.00	500,000.00
	Depreication		30,000.00	20,000.00
	Profit After depreciaiton		470,000.00	480,000.00
	Income Tax @ 30%		141,000.00	144,000.00
	FI Entry
	Tax Expenses as per Co.Act	Debit	144,000.00
	To Tax Payable as per IT	Credit		141,000.00
	To Deferred Tax Liability	Credit		3,000.00