02 April 2009
A. IF TAX LIAB IS RS.200000 THAN U NEED TO PAY RS.50000 AS SELF ASSMT TAX ENTRY IS PROVISION FOR IT A/C DR. 250000 TO ADVANCE TAX 150000 TO CASH / BANK A/C 50000 TO P & L A/C 50000 (CR.TO P&L IS TOWARDS EXCESS PROVISION MADE )
B. PROVISION FOR I.T A/C DR. 180000 P & L A/C(INCOME TAX) DR. 20000 TO ADVANCE TAX 150000 TO CASH / BANK 50000
03 April 2009
B) in this case provision is short. In first year entries will be like same, just change the amount of provision to Rs.180000.
IN Next year of assessment of tax at Rs.200000.
1. P & L appropriation a/c dr. 20000 To Prov. for tax 20000 ( first short provision is made full)
2. Prov. for tax a/c dr. 200000 To bank a/c 50000 To advance tax 150000
[ i have used P&L appropriation a/c because entry of tax relate to previous year. But when we make provision of tax in the year for which tax to be paid, use P&L a/c there.]
03 April 2009
HI Thank you very much all of you(HUZAIFA HUSSAIN, Devanshi Gandhi,Taranjit Singh
for helping me. I am realy enjoying to join this website. I will keep in touch with all of you in future. hope you will me help me. Devanshi I want to know your email id if you don't mind. my email id is monia.kushwaha@gmail.com I am working as an accountant.
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