Accounting Entry
This query is : Resolved
22 April 2009
Suppose we make provision for income tax receviable in last year Amounting 100 and we got refund in current year amounting Rs. 75 so what will be the treatment for Rs.25 which receviable for last year.
Please let me know that Thanking you
In my opinion it should be treated as expenses as provision written off
Please let me know that Thanking you
In my opinion it should be treated as expenses as provision written off
22 April 2009
Book the same into current year and note It is not prior period item
22 April 2009
ya correct, it is current year expense as TDS receivable written off.
22 April 2009
Similar to any other income receiveable, which is not recoverable, it will be debited to P/L account (not P/L Appropriation ) this year.
Bank A/c_____________________________Dr. 75 Lacs
To Profit & Loss A/c ....................25 Lacs
To Provision for Income Tax Receivable.... 100 Lacs
Bank A/c_____________________________Dr. 75 Lacs
To Profit & Loss A/c ....................25 Lacs
To Provision for Income Tax Receivable.... 100 Lacs
22 April 2009
Accounting entry for the refund
Bank A/c................Dr 75
Provision for Tax A/c...Dr 100
To Advance Tax/TDS Receivable A/c 175
Bank A/c................Dr 75
Provision for Tax A/c...Dr 100
To Advance Tax/TDS Receivable A/c 175
22 April 2009
Accounting entry for the refund
Bank A/c................Dr 75
Provision for Tax A/c...Dr 100
To Advance Tax/TDS Receivable A/c 175
Bank A/c................Dr 75
Provision for Tax A/c...Dr 100
To Advance Tax/TDS Receivable A/c 175
23 April 2009
I think correct entry may be
Bank account Dr 75
P& L Account Dr 25
To Provision for income tax receivable 100
reason behind this receivable of income tax is current assets and in Dr (Assets) side of balance sheet and now for clear this should be credited.
If any one have differant view, please mentioned.
Bank account Dr 75
P& L Account Dr 25
To Provision for income tax receivable 100
reason behind this receivable of income tax is current assets and in Dr (Assets) side of balance sheet and now for clear this should be credited.
If any one have differant view, please mentioned.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- Applicability
- Where to show the RCM on Rent paid to unregistered landlord
- Is Aadhar PAN linking required for opening bank account?
- Gst Sales of FY 2023-24
- RCM - commercial rent paid to URP under GST
- Payable outstanding for years disallowance
- TDS NUMBER SURRENDER
- Form 26QB for TDS on property
- Whether still royalty
- TDS applicability on Service through ECO
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
- Regarding einvoice taken on nil rated sales
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
