Yasaswi Gomes new (Finance ) (4514 Points)
16 July 2022Hi,
From the new machinery purchased, if the taxable difference is 10000 while current tax is 90000, the entries are supposedly
Dr. Current tax 100000
Cr. Deferred tax 10000
Cr. Current tax payable 90000
Can I pay off my current tax immediately this year and make entries like
Dr. Current tax 900000
Cr. Bank 100000
Dr. Deferred tax 10000
Cr. Deferred tax 10000??
txs.
Yasaswi Gomes new
(Finance )
(4514 Points)
Replied 17 July 2022
Can this be like
Dr. Current tax 900000
Cr. Bank 90000
Dr. Deferred tax expense 10000
Cr. Deferred tax liability 10000
The decrease of 90000 is a decrease on both assets and liabilities.
What can we do with the 10000?
Txs
CAclubindia
