journal entry

This query is : Resolved

javed shaikh (Querist)
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07 August 2010
1.WHAT WILL BE JOURNAL ENTRY IN BALANCE SHEET FOR THE REFUND CLAIM WHICH HAS BEEN NOT RECD AND SHOWN IN IT RETURN.

2.WHAT WILL BE JOURNAL ENTRY FOR S.A. TAX PAID FOR 2009-10 IT RETURN FOR THE 2010-11 IT RETURN

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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07 August 2010 you want entries in case of company or individual?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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07 August 2010 1. Debit provision to Advance tax & TDS a/c. balance in that account will be shown as income tax refund due.

2. Debit it to provision a/c.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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07 August 2010 In Individual---

1) Capital A/c Dr...(Actual Tax Liability)
IT Refund (AY 10-11) A/c Dr...

To Advance Tax A/c
To TDS Receivable A/c
To Self Assessment Tax A/c

2)Self Assessment tax A/c Dr.....
To Bank A.c.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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07 August 2010 In Company---

1) No entry is passed to show refund effect automatically takes place as Tax paid (Assests) is more than Provision (Liability) So excess tax paid is Refund (assets).

2) Self Assessment tax A/c Dr....
To Bank.....

Final adjustment entry is passed on receipt of assessment order.