Impact of deferred tax on account of new companies act, 2013

Saran Kumar (Staff Accountant) (71 Points)

19 July 2014  

Please Help.!!!

What will be the effect of Deferred tax adjusment on account of transfer of Depreciation/ Amortisation to opening reservers?

Please help which entry from below should i need to account in the books of accounts.

(For those assets whose useful life has been expired) 

Entry No1

Profit and loss (Opening) A/c    Dr

 To Accumulated depreciaiton / Asset A/c

 

Entry No 2

 Profit and loss (Opening) A/c Dr.

Deferred tax Asset A/c          Dr.

To Accumulated depreciation / Fixed Asset A/c

To Provision for Tax A/c

To Deferred tax (liabilty ) A/c

 

Entry 3:

(it is upto you :) )

 

please mark the respective Accounting standard/ regulatory guidance or regulatory update. 

 

Thanks,

Saran