Mohammed Rafi (Article Assistent) (45 Points)
28 May 2013Dear 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..
jignesh
(Surat)
(35 Points)
Replied 28 May 2013
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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