deferred tax journal entry in accounts

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monia (Querist)

16 June 2009 Hi All

1.What would be deferred tax asset journal entery in account?

2. What would be deferred tax Liablity journal entery in account?

Monia

Guest

Guest (Expert)

17 June 2009 Tax - Deferred tax (Under the head of P &L Exp) - A/c - Dr
To Deferred Tax Liability (Under the head of Balance sheet - Liabilities side) - Cr

and I think 1st entry will be pass, if you think over it...!!

If you are unable to pass 1st one entry thn revert back me.

Thanks & Regards

CA Binal Shah

CA Binal Shah (Expert)

17 June 2009 Hi,
Journal Entry for Deffered Tax Asset:

1. Deffered Tax Asset a/c(DTA)dr.
To P & L a/c
(Being deffered tax asset created for F.Y...)

Journal Entry for Deffered Tax Liability :

1. P & L a/c dr.
To deffered tax liability a/c(DTL)
(Being provision for deferred tax liab. for F.Y.....)

Alternatively you can create deffered tax liability a/c only and debit or credit the same accordingly for DTA or DTL.

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