provision for taxation

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deepak Kumar yadav (Querist)
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24 January 2009 plz tell me the netry of Provison for taxation in accounts ans effects of entry in PnL Balance Sheet. if adavce tax made during the year we have to make any adjustment with Provision for taxation in Accounts

Deepak Agrawal

Deepak Agrawal (Expert)
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26 January 2009 Entry...

Provision for Tax (P/L A/c)... Dr
To Provision for Tax (B/S Liability)

If advance tax is paid, it can be shown in balance sheet after netting off with provision for tax... Many companies show without netting off...