Adjustment of past year income tax demand raised & deposited in current year

This query is : Resolved

rahul pareek (Querist)
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19 July 2014 sir, we have received an demant notice for the year 12-13 and we have deposited the same with the department. now we are finalising the b/s for the yr ended 13-14. i want to know how to make accounting enteries & show this in p&l a/c or b/s. assessee is private ltd company

Ganeshbabu K

Ganeshbabu K (Expert)
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20 July 2014 Will not appear in Balance sheet
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As demand raised and paid in full
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In Statement profit and loss it will appear as prior year tax
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which will be along with current tax and defered tax
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Entry Recommended can be as follows
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Dr.prior Year tax
Cr.bank A/c