Entry

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 April 2014 Sir,
Income tax paid by some one else
pl suggest me
how would be the entry & under which group?
i need both entries
Payment & journal.

Thanks

CA Devanand Jethanandani

CA Devanand Jethanandani (Expert)
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01 April 2014
If tax of A is paid by B,
entries in the books of A will be,

1.) when tax is paid by B on A's behalf,

Journal entry,
Income Tax Advance Dr.XXX
To B (under loan, liabilities) Cr.XXX

2.) when A makes this payment to B,
Payment entry,
B A/c. Dr.XXX
To Cash / Bank Cr.XXX

Regards,

Devanand

Querist : Anonymous

Querist : Anonymous (Querist)

01 April 2014 Thak you sir,

and i have to make entry for Income Tax payable for FY-11-12
the said entry i have to make in current year or i have to make it in relavent year only.
pl suggest

pl suggest me how will i make entry in journal and in which under group?
Thanks

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CA Devanand Jethanandani

CA Devanand Jethanandani (Expert)
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01 April 2014 If books are not closed for FY 2011-12 then pass journal entry in the same year (in 2011-12)

If it is self asst. tax then instead of 'income tax advance' debit 'income tax account' (under indirect expenses)

Regards,
Devanand

Querist : Anonymous

Querist : Anonymous (Querist)

01 April 2014 Sir,
in earlier quetion Income Tax Advance
would be under group Loans & Advances?

CA Devanand Jethanandani

CA Devanand Jethanandani (Expert)
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01 April 2014 Yes loans & advances