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| This query is : Resolved
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Author : Anonymous
( Author )
22 September 2012
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plz tell me the treatment of salary in proprietorship firm
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Amol S. Joglekar.
( Expert )
22 September 2012
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Salary to preoprietor tantamounts to DRAWINGS. Salary to others is quite possible.
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Pankaj Gupta
( Expert )
22 September 2012
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Salary paid to any employee is possible that too a fair salary. But if salary is paid to proprietor than such salary will be part of drawaings.
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Author : Anonymous
( Author )
28 September 2012
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in proprietorship.sir i have paid income tax fy 2011-2012 on 29-09-2012 what is the journal entry of this tax.
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Amol S. Joglekar.
( Expert )
28 September 2012
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on 31/3/2012 make a provision entry for income tax. on 29/9/2012 pass the entry through this provision account.
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Author : Anonymous
( Author )
29 September 2012
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should i do like this
capital a/c dr
to cash cr
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Author : Anonymous
( Author )
29 September 2012
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in fy 2012-13
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Pankaj Gupta
( Expert )
29 September 2012
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For other than income tax purpose, income tax paid is treated as a business expense. Hence such expense should be paid from profit and loss account and should not be shown as drawings.
Moreover, the treatment specified by amol sir is correct. Because the tax expense relates to the fy 2011-12, hence treatment should be from the profit of same fy.
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