Provision for income tax

This query is : Resolved

Debjit Saha (Querist)
Follow

23 June 2014 Suppose i kept provision for income tax Rs. 20000 but after that next f.y adjusting all i have seen i have to pay only 18000. how it will be treated.? Also tell me regarding tally entries.

Thank you

Nischit Sanghavi

Nischit Sanghavi (Expert)
Follow

23 June 2014 Make provision for income tax by:
1) P & L a/c Dr.
To Provision for I.Tax

on adjustment:
2)Provision for I.Tax Dr.
To Income Tax A/c

On payment of Income Tax:
3)Income Tax Dr.
To Cash/Bank

Rupesh Jain

Rupesh Jain (Expert)
Follow

23 June 2014 when prov.

profit & loss a/c 20000
provision for tax 20000

if your make adv tax then

prov for tax 18000
to advance tax a/c 18000

if you make tax

prov of tax a/c
to bank

adj entry of Rs. 2000

prov of tax a/c
to profit & loss a/c or reserve and surplus a/c

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!

Debjit Saha

Debjit Saha (Querist)
Follow

24 June 2014 Thanks @ nischit and rupesh