Income tax entry of partnership firm
This query is : Resolved
KAUSHIK ROY
(Querist)
07 June 2019
What will be the entry of a Partnership firm for provision of income Tax? should it be part of profit & loss account or appropriation account? Profit to be shared between partners is before income tax or after income tax? Please guide with accounting entry.
Amol S Joglekar
(Expert)
07 June 2019
One way of doing it is to debit partner's capital account for payment/provision of income tax (This is similar to proprietory accounts)
Another way of doing it is like Company
Debit Profit and Loss account (And not appropriation)
Credit Provision for taxation
Another way of doing it is like Company
Debit Profit and Loss account (And not appropriation)
Credit Provision for taxation
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KAUSHIK ROY
(Querist)
07 June 2019
Thanks for reply. Profit that is to be shared between partners is the profit before income tax or profit after income tax
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Amol S Joglekar
(Expert)
07 June 2019
Profit after income tax/ provision for income tax
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