Defered tax assets/deferred tax liability
This query is : Resolved
10 May 2013
sir i am working in a chartered accountants firm as a paid staff.I am very much confused about passing the entry of deferred tax asset/liability in the books. please guide me how the entry will be passed
CA Sourabh Agarwal
(Expert)
10 May 2013
For DTA --
Dr. DTA
Cr. P&L
For DTL --
Dr. P&L
Cr. DTL
Dr. DTA
Cr. P&L
For DTL --
Dr. P&L
Cr. DTL
10 May 2013
sir suppose after making provision of income tax in profit and loss account, profits are in-sufficient to pass the entry of D.T.L then how the entry will be passed ?
CA Sourabh Agarwal
(Expert)
10 May 2013
DTL is not an appropriation against profits. It is an expense and same has to be provided irrespective of availability of profits.
11 May 2013
SIR THEN PROFIT AS PER PROFIT AND LOSS ACCOUNT WILL BE IN NEGATIVE AFTER PASSING THE ENTRY OF DTL
CA Sourabh Agarwal
(Expert)
11 May 2013
Yes. What is the problem in that.
13 May 2013
thank you sir for your guidance
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