Balance sheet tallying

Hi

Dr. Taxes Cr. Bank

Dr. Depreciation Cr. Asset

My question is simple! How did everyone tally your balance sheets when you got tax allowable depreciation claimed. Eg. Asset is reduced and profit is reduced and that is perfect tallying. But TAD increases the profits back. So how can anyone tally a balamce sheet under this condition? How does corporate tax help with this issue? 

Txs

Replies (3)
Quick Summary
This discussion tackles the common accounting puzzle of balancing a balance sheet when tax allowable depreciation is claimed. The core issue is how to reconcile the asset and profit reduction from depreciation with the subsequent increase in profit due to tax adjustments. Participants explore how depreciation, being a non-cash expense, affects profit and how to correctly tally this using the Fixed Asset schedule and understanding the Income Tax Act 1961.

Depreciation is a non cash expenditure.
So it's time to rectify the mistake.
.claiming of depreciation is as per income tax act 1961.

So is it not claimed against the profits? Ie, wont the profits increase baxk after adding allowable or deductable expenses? 

Tally with the FA SCHEDULE.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
08 October 2026
SALES TELECALLER

HIRE NOVA

Lucknow

Graduate (Any)

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
30 October 2026
Asst Manager Accounts

Goodwin Pumps India Pvt Ltd

Chengalpattu

CA Inter

View Details
Company
ARTICLESHIP 23 October 2026
Articled Trainee

J Y & CO

Hyderabad

CA Inter

View Details
Company
Featured 27 October 2026
semi-qualified CA

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Final

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
28 October 2026
Assistant Director/ Associate Director-Finance & Accounting

Krea University

Chennai

CA

View Details