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MelSyd limited has determined its accounting profit before tax for the year ended 30 June 2021 to be $255,700. Included in this profit are the items of revenue and expense shown below.

Royalty revenue (non-taxable exempt income)	8,000
Entertainment expense (non-deductible)	1,700
Depreciation expense - plant	22,500
Doubtful debt expense	4,100
Annual leave expense	46,000
Insurance expense	4,200
Development expense	15,000

The companys draft statement of financial position (Balance Sheet) with carrying amount (extract) and corresponding tax bases at 30 June 2021 showed the following assets and liabilities:

Assets (extract):	$	Carrying Amount ($)	Tax Base ($)
Cash		2,500	2,500
Account receivables	21,500
Less Allowance for doubtful debt	(4,000)	17,500	21,500
Inventories		31,600	31,600
Prepaid Insurance		4,500	0
Land		75,000	75,000
Plant	150,000
Less accumulated depreciation	(67,500)	82,500	60,000
Deferred tax asset (DTA) opening balance		6,000	-
Liabilities (extract):
Accounts payable		25,000	25,000
Provision for Annual leave		10,000	0
Deferred tax liability (DTL) opening balance		6,000	-
Loan		140,000	140,000

Additional information:

(a) The tax depreciation rate for plant (which cost $150,000 3 years ago) is 20%.

(b) During the year, the following cash amounts were paid for:

Annual leave	$52,000
Insurance	$3,700

(c) Bad debts of $3,500 were written off against the allowance for doubtful debts during the year.

(d) The $15,000 spent (recognised expense) on development during the year is not deductible for tax purposes until 30 June 2021.

(e) The company tax rate is 30%.

Required:

a) Prepare the current tax worksheet and the journal entry to recognise current tax liability for the year ended 30 June 2021. (4 marks)

b) Prepare the deferred tax worksheet and journal entries to adjust deferred tax accounts. (4 marks)

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