S.tax entry

This query is : Resolved

prakash (Querist)
Follow

21 March 2015 dear sir suppose s.tax of a month is 75286/- s.tax paid 76214/- fine 928/ (76214-75286= 928) then entry (in payment v.) s.tax a/c ..dr(76214) bank a/c ....cr(76214) & in journal entry Fine a/c ..dr(928) s.taxa/c...cr(928) is this correct .

CA Devanand Jethanandani

CA Devanand Jethanandani (Expert)
Follow

21 March 2015 There is nothing wrong in this entry as ultimately effect will be same but why to pass 2 entries ? you can pass 1 entry as below,

S.Tax Dr. 75286
Penalty on S. Tax Dr. 928
To bank Cr.76214