Previous year provision

This query is : Resolved

AMIT KUMAR ROY (Querist)
Follow

19 July 2008 Goood Morning Sir,

When we maked Balnace Sheet as on 31.03.2007, we have provided the provision for taxation and provison for FBT.
Now, next year shows in the trial balance as a opening balance, so you requested to guide me that in current year how should it adjusted and and what will be the entry in current year for provision of taxation and fbt
Pleas reply us as early as possible

Thanks

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
Follow

19 July 2008 The provision should be reversed in next year by adjusting the taxes paid(including the self asstt tax or refund paid or received in the next year) against the provision for that relavant year. Current Year provision is to be made for the CY's income out of the profits for the year.