Income tax entry of partnership firm

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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

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

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KAUSHIK ROY

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

Amol S Joglekar (Expert)

07 June 2019 Profit after income tax/ provision for income tax

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