01 January 2010
Hi can any one tell me? if suppose in A.y. 2006-07 there is deffered tax liability then what will be the entry? And after that in A.Y. 2007-08 there is defeered tax asset then what should be the entry? Can we set off defered tax liability of A.Y. 2006-07 if in A.Y. 2007-08 there is defeered tax asset?
01 January 2010
In A.Y. 2006-2007 entry should be Debit Provision for Deferred tax Exp.(UnderP&L) and Credit Deferred tax liability (Balance Sheet) In 2007-2008 if there is deferred tax assets then entry will be opposit as above you can set off D.L. with that of D.A. and in balance sheet the net will be appeared.
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