acccounting entry

This query is : Resolved

rupesh (Querist)
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25 December 2009 Hi,
Any one can explain entry?
Advance tax 5000
TDS 3000
Provision tax 6000
(1) If actual tax is 30000, (2) If actual tax is 10000
then what entry should be done.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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25 December 2009 1.
Dr. Income tax Rs.24000
Dr. Provision tax Rs.6000
Cr. TDS Rs.3000
Cr. Advanc Tax Rs. 5000
Cr. Bank Rs.22000

2.
Dr. Income tax Rs.4000
Dr. Provision tax Rs.6000
Cr. TDS Rs.3000
Cr. Advanc Tax Rs. 5000
Cr. Bank Rs.2000

CMA Arif Farooqui

CMA Arif Farooqui (Expert)
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26 December 2009 agree

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Sambhu

Sambhu (Expert)
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26 December 2009 The above suggested entry is ok if assessement is completed and no dues are pending.
However if assessement is not completed actual tax is work out at the time of tax audit then.
1Dr. Provision for tax Rs.24000
cr. Provision for earlier year Rs.24000
Dr. Advance tax Rs. 22000
Cr. Bank Rs.22000
2Dr. Provision for tax Rs. 4000
cr. Provision for earlier year Rs.4000
Dr. Advance tax Rs. 2000
Cr. Bank Rs.2000