Income tax refundable

Tax queries 474 views 1 replies

Dear sir

 

while Preparing Finacial Statement i found INCOME TAX REFUNDABLE RS.18500  how will treat this amount in partnership firm 

advance tax paid already debited to partners capital account . wheater we need credit this amount (income tax refundable )in to partners capital account..

Replies (1)

in a partenership firm, income tax is not debited to partner's capital account,but it is debited to profit and loss account (as an expenses.)

and income tax refund account is credited to advance tax account.


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