Tally entry

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

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.

HIREN

HIREN (Expert)
Follow

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

Message likes : 4 times