FBT

Sirs'

Please explain me about.

1. FBT paid- whether it is an expenses or current asset?

2.In my company every quarter we paid the FBT. But we made entries like

FBT A/c    Dr     Rs.100

to FBT payable (07-08)  Rs. 100

and at the time of payment

FBT paid (07-08)  Rs. 100

To Bank                                  Rs. 100

Here FBT under the group of Indirect Expenses.

FBT payable (07-08) under the group of Statutory Liabilities

FBT Paid (07-08) under the group of Current Assets.

What is the reason behind it.

Because we can make it like

FBT payable(07-08)  A/c Dr.  Rs. 100

To Bank                                                       Rs.100.

please explain.