Company Books of Accounts
This query is : Resolved
13 January 2022
Company has paid huge amount of VAT during 2020-21 for earlier years, which were not outstanding in current liability, because of which now it is affecting current year's profit.
So, whether to show it in Profit & Loss Account because of which books of accounts is showing huge loss
or
can we directly debit to Reserves and surplus without affecting Profit and loss Account of the current year
or is there any other accounting entry option as we don't want to show loss on face of P & L?
So, whether to show it in Profit & Loss Account because of which books of accounts is showing huge loss
or
can we directly debit to Reserves and surplus without affecting Profit and loss Account of the current year
or is there any other accounting entry option as we don't want to show loss on face of P & L?
13 January 2022
Show it in profit and loss and tranfer it to reserve so that disclosure will be there and profit will not be affected.
Claim it in income tax calculation.
Claim it in income tax calculation.
13 January 2022
Thank you Sir. But if We show it in P & L then how to trfr in reserves? For Income Tax if we don't want to claim the same then what will be the accounting?
13 January 2022
Credit p and l and and transfer to reserve.
If you don't want to claim in income tax directly debit reserve and disclose in financial statements.
If you don't want to claim in income tax directly debit reserve and disclose in financial statements.
Message likes :
1 times
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
- Manual Rectification through AO
- IT Return filed defective u/s 139 (9)
- Defective Return - Tds on advance
- Fixed Deposit Claim Relinquishment by the Nominee
- TDS RATE ON RENT PAID TO NRI
- Income Type for interest from government bonds
- TCS ON SOFTWARE SALES
- Not a CA , can we prepare balance sheet
- Valuation of diamonds as on 01.04.2001
- GSTR 9 23-24
- Issue of gst e invoice
- Gstr 9 2023-24
- 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
- GST RCM not shown in GSTR-3B
- Bill from Dispatched from issue.
Trending Online Classes
-
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
Mr.Balamurugan Ranganathan15 November 2024
CAclubindia
