what is the entry for creating DEFFERRED TAX ASSET OR
LIABILITY......? one aspect we r db/cr deffered tax.what is
d another aspect??????????????????????

Answer Posted / dipti panigrahi

Entry for creating Deferred Tax Asset is:

Deferred Tax Asset a/c Dr
Profit & Loss a/c Cr

Entry for creating Deferred Tax liability is:

Profit & Loss a/c Dr
Deferred Tax liability a/c Cr

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