What will be journal entry of provision for income tax in
current year and Adjustment entry in next year
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 |
What are recent changes in Service Tax Reverse Charge by Budget 2012?
What is contra entry?
why we have to post loss on assets side
how to deduct tds on pension with examples
4 Answers Chartered Accountant,
Can i put opening stock in new company during closing time
what is service tax rate for company/ indivisual?
Tell me in which account does the unpresented cheque will get recorded?
1- what is cash flow and fund flow 2-Defference between TDS and TCS
Mr.A repaired a printer of a company and charge a bill of Rs.1200? The company paid Mr.A cheque of Rs.1080 and deduct Rs.120 in TDS after couple of day Mr.A received TDS certificate from the company. pass all the entries in the books of accounts.
how to prepare final accounts of proprietor
how to calculate the income in accounting ?
Your marketing company has been working on a consulting project for a client. Your team has worked on the project for two months, and it is now year-end. The project will be completed by February of the next year, and the client has not yet been billed. For the financial statement, how should project be classified?Should the costs associated with an uncompleted consulting project be classified as a work-in-process asset on the balance sheet or should the cost be expensed on the income statement as a part of the doing business?why?