12 May 2018
Dear Sir Please suggest below entry is correct in tally or wrong. ( Partnership firm) Provision for income tax 63000/- Cr. (31.03.2018) Partners A/c Capital 63000/- Dr. Advance income tax 21000/- Cr Proviosn for income tax 21000/- Dr.
13 May 2018
Why you are adjusting partners capital account,if income tax provision is less than equal to advance tax paid, you can debit Income Tax a/c Dr Advance tax cr
Extent of income tax should be during Appropriation of Profit.
CAclubindia
