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Defered tax assets/deferred tax liability

This query is : Resolved 

10 May 2013 sir i am working in a chartered accountants firm as a paid staff.I am very much confused about passing the entry of deferred tax asset/liability in the books. please guide me how the entry will be passed

10 May 2013 For DTA --

Dr. DTA
Cr. P&L

For DTL --

Dr. P&L
Cr. DTL

10 May 2013 sir suppose after making provision of income tax in profit and loss account, profits are in-sufficient to pass the entry of D.T.L then how the entry will be passed ?


10 May 2013 DTL is not an appropriation against profits. It is an expense and same has to be provided irrespective of availability of profits.

11 May 2013 SIR THEN PROFIT AS PER PROFIT AND LOSS ACCOUNT WILL BE IN NEGATIVE AFTER PASSING THE ENTRY OF DTL

11 May 2013 Yes. What is the problem in that.

13 May 2013 thank you sir for your guidance



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