deferred tax journal entry in accounts

This query is : Resolved

monia (Querist)
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16 June 2009 Hi All

1.What would be deferred tax asset journal entery in account?

2. What would be deferred tax Liablity journal entery in account?

Monia

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Guest (Expert)

17 June 2009 Tax - Deferred tax (Under the head of P &L Exp) - A/c - Dr
To Deferred Tax Liability (Under the head of Balance sheet - Liabilities side) - Cr

and I think 1st entry will be pass, if you think over it...!!

If you are unable to pass 1st one entry thn revert back me.

Thanks & Regards

CA Binal Shah

CA Binal Shah (Expert)
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17 June 2009 Hi,
Journal Entry for Deffered Tax Asset:

1. Deffered Tax Asset a/c(DTA)dr.
To P & L a/c
(Being deffered tax asset created for F.Y...)

Journal Entry for Deffered Tax Liability :

1. P & L a/c dr.
To deffered tax liability a/c(DTL)
(Being provision for deferred tax liab. for F.Y.....)

Alternatively you can create deffered tax liability a/c only and debit or credit the same accordingly for DTA or DTL.

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