deferred tax

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deepak Kumar yadav (Querist)
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19 September 2009 what is the entry for deffered tax in books of accounts.
pls give both i.e deffered tax asset ,deffered tax liability.given it jounalised entry way

urgent

Zeeshan

Zeeshan (Expert)
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19 September 2009 the entry will be.....

1. for deferred tax asset

Deferred Tax Asset A/c Dr.
to Profit & Loss a/c

2. for Deferred Tax liability
Profit & Loss Account Dr.
to Deferred Tax Liability

Instead of debiting/crediting P & L A/c directly you can also open a "Deferred Tax Adjustment Account" and this account should be transferred to Profit & Loss Account on 31st March.