Interested to Buy Any Domain ? << Click Here >> for more details...
What will be journal entry of provision for income tax in
current year and Adjustment entry in next year
- 14 Answers
- 199447 Views
- I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / k.kavitha
Provision entry for current Year
Income Tax A/c ----Dr
To Income Tax Payable A/c
Adjustment entry in next Year
Income tax payable---Dr
To bank A/c
| Is This Answer Correct ? | 224 Yes | 56 No |
FOR CURRENT YEAR WHEN PROVISION MADE
(IN P & L APPROCIATION ACCOUNT)
PROFIT & LOSS ACCOUNT DR. .......
TO PROVISION FOR INCOME TAX ACCOUNT ........
FOR NEXT YEAR WHEN PAYMENT MADE.
PROVISION FOR ICOME TAX ACCOUNT DR.
TO BANK ACCOUNT
| Is This Answer Correct ? | 124 Yes | 34 No |
Answer / anees mt
1.At the time of Creation of provision for income tax in previous year for coming year.
Profit & Loss A/c Dr.
To Provision for Income tax
2.At the time of Actual Income Tax Calculated.
provision for Income tax A/c Dr.
To Income Tax
3.At The time of Payment .
Income Tax A/c Dr.
To Bank
| Is This Answer Correct ? | 93 Yes | 17 No |
Answer / mohit
Normally following entries for Income Tax puposes:
1. Deposing Advance Tax:
Advance Tax (A.Y. ____) Dr.
To Cash or Bank
2. Provision for Current Year I.Tax:
Income Tax (Expenses) Dr.
To Provision for Tax (A.Y. _____)
3. When assessment completed and refund received:
Provision for Tax (A.Y. _____) Dr.
Bank Dr.
To Advance Tax (A.Y. ____)
4. When assessment completed and some demand raised:
Provision for Tax (A.Y. _____) Dr.
To Advance Tax (A.Y. ____)
To Income Tax Additional Demand (Expenses)
Source(s):
Self
| Is This Answer Correct ? | 40 Yes | 18 No |
Answer / praveen.kp
1 current year
Income tax a/c dr
to provision for taxation a/c
2.next year(adjustment entry)
a)Provision for taxation a/c dr
to income tax payable a/c
b)Income tax Payable a/c Dr
to Cash a/c
Mainly there are 3 entries one is for creating provision,
and the second one is reversal of the same in next year or
month after calculating actual tax payable, and the last one
is for payment of tax to the Government authorities
| Is This Answer Correct ? | 47 Yes | 29 No |
Kavitha pl observe my answer. According to you the amount
of Income Tax is confirmed but not paid. But according to
the question some amount was provided in the shape of
provision. It is not exact figure.it may be raised or
lowered.
sankeerthana
www.therealaccountants.com
| Is This Answer Correct ? | 19 Yes | 11 No |
Answer / aj
At the time of providing provision for tax the entry is(current year)
dr-tax a/c
cr-provision for tax a/c
at the time of payment (next year)
dr--provision for tax ac
cr-bank a/c
| Is This Answer Correct ? | 13 Yes | 7 No |
Answer / manish
Can we make entry like this in case of additional demand raised:
Additional income tax demand (ass yr)dr
To. Bank/cash cr
| Is This Answer Correct ? | 10 Yes | 4 No |
Answer / sreeram
Hi Sankeerthana,
Here the provision you have created in the earlier year you
should reverse with corresponding payment.
By end of Sep 30 you know exact amount of Tax you need to
pay simply pass one more JV.
| Is This Answer Correct ? | 10 Yes | 12 No |
purchased books rs.50000 and paper 25000
what is the meaning of A/c
what is addition of Opening Balance and net profit transfered from profit and loss account called?
WHY NOT SHOWING CLOSING STOCK IN TRAIL BALANCE
If a promoter has purchased an asset on behalf of the company before the incorporation of the same then what will be the accounting treatment to record the asset in the books of company
WAT ARE ACCOUNTING PRINCIPLES
What do you mean by Rollforward and open item in Accounts Reconciliation?
debt equity ratio
journelising the following? dpereciation of plant & machinery rs 30000/- interest accrued but not received Rs 15000/- prepaid insurance Rs 10000/- drawings of cash Rs 5000/- withdrew goods for personnel use Rs 2000/- what is cost centre? How do you verify the correctness of material control system? How many directors are required at a minium for Private ltd and public ltd companies? How do you compute the following ratios? current ratio net profit ratio gross profit ratio debt service coverage ratio sales turnover ratio
what is capital expenditure
How to pass an general entry for materials which are stored in warehouses??????
WHAT IS THE DIFFERENCE BETWEEN ESTIMATED BALANCE SHEET & PROJECTED BALANCE SHHET
Audit 
