07 June 2019
What will be the entry of a Partnership firm for provision of income Tax? should it be part of profit & loss account or appropriation account? Profit to be shared between partners is before income tax or after income tax? Please guide with accounting entry.
07 June 2019
One way of doing it is to debit partner's capital account for payment/provision of income tax (This is similar to proprietory accounts) Another way of doing it is like Company Debit Profit and Loss account (And not appropriation) Credit Provision for taxation
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