27 October 2011
in d Question two year balances are given but there is nothing mentioned about tax in the balance sheet......... in Adjustment advance tax paid is given Rs. 5,000. how it wuld b treated in CFS
30 October 2011
Hi Pankaj, I assume that CFS means cash flow statements. In that case, tax paid is shown as (-) from cash from operating activities. Why are u so bothered if nothing is mentioned in the question? It simplifies ur work no? Regards, CA Shakuntala Chhangani
31 October 2011
Hi again pankaj, as u wrote that nothing is mentioned about tax in the question, i took it as tax provision as u have specifically mentioned that tax paid has been given in the adjustment. If it is not appearing in the balance sheet and there is no suspense account appearing then it is possible that the payment has not been recorded in the books.In that case, u need to record the same by reducing cash/bank balance and showing advance tax on asset side of balance sheet. Regards, CA Shakuntala Chhangani
04 November 2011
mam i m 100% agree wid u........but dis Q has been asked in 12th standard CBSE 2011 xam... i think it is wrong.....its my view......i may b wrong..
Additional Information: (a). Depreciation on fixed assets charged during the year was Rs. 20,000. (b). Income Tax Rs. 5,000 has been paid in advance during the year.
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