Deferred tax

This query is : Resolved

jui mondal (Querist)
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23 August 2011 there was deferred tax for f y 2009-2011 as per balance sheet is Rs. 25644/- . this year there is also a deferred tax asset is Rs. 24154/-...now how should I make the deferred tax treatment in the Profit and Loss Account and in the Balance Sheet for the year 2010-2011 ???

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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23 August 2011 More clarity need your query. incase Rs.25644 deferred tax asset for 2009-10 and 2010-11 further you get deferred tax assets in addition to the previous year asset the you need to credit Profit & loss account Rs.24154 and debit deferred tax asset

incase total deferred tax asset Rs.24154 as on 2010-11 then you need to debit the difference of (Rs.25644-Rs.24154)Rs.1490 debit to profit & loss account

jui mondal

jui mondal (Querist)
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23 August 2011 deferred tax of RS 25644/- is caried forward from last year and new increase in Deferred Tax is Rs. 24154/- during 2010-2011.how will be treatment in balance sheet and in PL??

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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23 August 2011 if deferred tax asset increase further then you need to pass the following entry

Dr: Deferred tax asset Rs.24154
Cr: Profit & loss a/c Rs.24154

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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23 August 2011 In balance sheet your Deferred tax asset value increase Rs.24154

jui mondal

jui mondal (Querist)
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23 August 2011 thank u ..thanks a lot...