I have a large amount of CT accrued on the balance sheet which was over estimated in previous years, there is no tax liability for the current year. Can I make a journal against the retained profit to correct?
jem
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Credit
You should credit the over-provision to the same account - presumably, the P&L tax charge - to which you posted the debit in previous years. It is not an adjustment to retained profits brought forward, but a tax credit for the current year.