Accounting Entry for deferment of sales tax
This query is : Resolved
12 September 2009
dear sirs ,
Plz suggest me the accounting treatment of defferment of sales tax , since there is a opening balance of DFT SALES TAX IN Balance sheet & in current year , concern has paid the tax out of it , how to adjust the balance ? if expensed in P&L , WHAT IS THE ENTRY ?
Plz suggest me the accounting treatment of defferment of sales tax , since there is a opening balance of DFT SALES TAX IN Balance sheet & in current year , concern has paid the tax out of it , how to adjust the balance ? if expensed in P&L , WHAT IS THE ENTRY ?
30 September 2009
if company has opted composition scheme then it will be an expenses in profit and loss account otherwise it would be only a discharge of liability and after payment only that laibility willl be removed from balance sheet.
the entry would be in first case:-
sales tax Dr.
to cash
Profit and loss a/c Dr.
to sales tax
as sales tax has been paid then defferd sales tax will get reduced.
in second case the entry would be:-
deffered sales tax a/c Dr.
to cash
as above again deffered sales tax will get reduced.
the entry would be in first case:-
sales tax Dr.
to cash
Profit and loss a/c Dr.
to sales tax
as sales tax has been paid then defferd sales tax will get reduced.
in second case the entry would be:-
deffered sales tax a/c Dr.
to cash
as above again deffered sales tax will get reduced.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Refund Annexure-B
- House Property Reporting in ITR
- TDS Claim year
- Liable to deduct tds and 44ADA
- Rent lease agreement
- Refund of 20%pre-deposit paid for stay application
- TDS Challan Code
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- Is Interest applicable for payment made through credit ledger vide DRC03 for FY 2020-21 & 2021-22
- Internship/Academic shown in Salary Pay Slip of a Doctor
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
