10 May 2012
dear sir pls.help for income tax paid entry samz main aagya. lekin Provision for income tax A/c,Advance tax Or TDS Receivable tally me kon se a/c ke under aayegi.
10 May 2012
Suppose you made (A) Advance Tax = Rs.1000 (B) Your TDS Deducted = Rs.500 (C) At the year end you estimate your total tax liability = Rs. 2200 (D) Therefore you require to make provision for Tax = Rs.700 (2200-1000-500) (E) You make payment of tax related to past year in current year i.e. Rs.700
Following Entries required to be passed in books
(1) For Advance Tax Advance Tax ..........Dr 1000 To Bank A/c 1000
(2) For TDS TDS A/c ..............Dr 500 To Party A/c 500
(3) For tax provision Profit & Loss A/c ..........Dr 700 To Provision for Tax A/c 700
(4) Payment of Tax Provisions Provision for Tax A.c....Dr 700 To Bank A/c.................700
(5a) Finalisation entry in books Tax Expense A/c..........Dr 1500 To Advance Tax A/c...... 1000 To TDS A/c.................. 500
(5b) Profit & Loss A/c .......Dr 1500 To Tax Expense A/c... 1500
ACCOUNTING HEADs FOR ALL ACCOUNTS
Advance Tax Balance Sheet Loans & Advances TDS Balance Sheet Loans & Advances Provision for Tax Balance Sheet CL & Provision Tax Expense P & L A/c Expense
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