CA.Sonia (professional) (517 Points)
23 September 2014
Hello Everyone,
If a Pvt ltd company as Per income tax Law there is loss & As per Companies act there is a profit of Rs.1 Lakh which is same as of Book Profit .
Please Tell me the Accounting Entries of the above.
2.Do we need to create the Deffered Tax Liablity as the Depreciation is follows:-
| As per income Tax Act | 692798 |
| Companies Act | 414617 |
Please Tell me the Accounting Entries of the above.
Please Reply soon
jitendra
(a/c)
(22 Points)
Replied 23 September 2014
1.)pass entries for DTL
Defered tax a/c Dr 278181
Defered Tax Liability Cr 278181
2.)For passing necessary entries for MAT (if enterprise is expecting normal profit in future)
profit and loss a/c Dr 100000
MAT a/c Cr 100000
(make provision of Mat )
MAT a/c Dr 100000
MAT credit a/c Dr 100000
(pay mat and consider in balance sheet as mat credit under current asset.)
CAclubindia
