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Income tax accounting enteries

Surbhi jain (To become ca) (22 Points)

26 April 2017

i want to know accounting enteries of advance tax paid in year is rs5000 and total tax payable is rs 6000 then 1000 is self assessment tax and is paid in next year i.e. in ay then what will be enteries in fy

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3 Replies

(Guest)

if advance tax paid

advance tax

To cash or bank

if self assessment tax paid

self assessment tax

To cash or bank

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CA Tanvi Sheth (Consultant) (232 Points)
Replied 27 April 2017

a) For payment of Adv tax:

Adv tax A/c 5000

To Bank 5000

b) At the year end, we create provision for tax:

P& L 6000

To Provision for tax 6000

c) In next year when actual tax is detected and paid:

Provision for tax 6000

To advance Tax 5000

To income tax exp 1000

D) when these exp are paid:

Income tax exp 1000

To bank 1000

srinivas (Finance Manager) (239 Points)
Replied 29 April 2017

Dear Mr. Surbhi jain

As per your ur transaction, you will pass the following entries.

At the time of Advance Tax Payment
Dr. Advance Tax Paid F.Y: 2016-17 -------------------- Rs.5,000
Cr. Bank/Cash-------------------------------------------------- Rs.5,000

At year ending create Provison of Income Tax.
Dr. Income Tax Payable F.Y: 2016-17 -------------------- Rs.1,000
Cr. Provision for Income Tax F.Y: 2016-17 -------------- Rs.1,000

When Fial Income Tax Paid
Dr. Provision for Income Tax F.Y: 2016-17 -------------- Rs.1,000
Cr. Bank/Cash ---------------------------------------------------- Rs.1,000

Regards

VASU

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