provision entris

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 July 2010 i want to know the,how to create the provision for taxation entries at the end of the year.can any body clear my this query with example of any new company?

Akhil Agrawal

Akhil Agrawal (Expert)
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09 July 2010 Profit & Loss Ac Dr
Provision for Income TaxCr

& Exp Dr.
To payable Exp Cr

Rahul Gupta

Rahul Gupta (Expert)
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09 July 2010 According to me, at the end of year suppose you have telephone exp of march which will be paid in april, so the entry for it will be

Telephone Exp...Dr.
To Prov for Telephone Exp.

Telephone Exp. will be charged in P&L as expenses and Prov for telephone exp. will be shown under provision.

In April, when payment will be made >
Prov for Telephone Exp...Dr
To Bank/Cash

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