A/c entriy interest paid on income tax
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
12 September 2011
Dear Sir,
I want to know the accounting treatment of interest paid on income tax i.e
Interest on Income Tax A/C Dr
To Bank
(At the time payment of interest)
Profit and loss A/C Dr
To Interest on Income Tax
(At the time of closing books)
my confusion is that whether the head interest on Income Tax will be shown below the line/above the line in the Profit and Lose Account of the company.
Which option seems to be more appropriate
Thanxs
D K Bohra
I want to know the accounting treatment of interest paid on income tax i.e
Interest on Income Tax A/C Dr
To Bank
(At the time payment of interest)
Profit and loss A/C Dr
To Interest on Income Tax
(At the time of closing books)
my confusion is that whether the head interest on Income Tax will be shown below the line/above the line in the Profit and Lose Account of the company.
Which option seems to be more appropriate
Thanxs
D K Bohra
12 September 2011
it will be shown above the line in the P& L becz it just like any other fine or penalty paid by the company.
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