Entity A prepares its financial statements on 31 July each year. The entity’s balance sheet as at 31 July 2008 showed a liability for current tax of EUR 240,000. This was an estimate of the current tax due for the year ended 31 July 2008. The following information is available: 

Prepare a current tax account for the year ended 31 July 2009, showing the amount of the current tax expense which should appear in the income statement for the year and the amount of the current tax liability which should appear on the balance sheet at that date.

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(a) The current tax due for the year ended 31 July 2008 was finally agreed with the tax authorities at EUR 254,000 and this amount was paid on 1 May 2009. (b) On 15 June 2009, the entity received a dividend of EUR 18,000. This dividend had an attached tax credit of EUR 2,000 but Entity A can make no use of this tax credit. (c) The entity estimates the amount of current tax due for the year ended 31 July 2009 to be EUR 280,000.