deffered tax liability and asset

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rupesh (Querist)
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01 January 2010 Hi
can any one tell me?
if suppose in A.y. 2006-07 there is deffered tax liability then what will be the entry?
And after that in A.Y. 2007-08 there is defeered tax asset then what should be the entry?
Can we set off defered tax liability of A.Y. 2006-07 if in A.Y. 2007-08 there is defeered tax asset?

Bimal Thacker

Bimal Thacker (Expert)
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01 January 2010 In A.Y. 2006-2007 entry should be
Debit Provision for Deferred tax Exp.(UnderP&L) and
Credit Deferred tax liability (Balance Sheet)
In 2007-2008 if there is deferred tax assets then entry will be opposit as above
you can set off D.L. with that of D.A. and in balance sheet the net will be appeared.