Income tax on firm

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2012 Dear expert,
Suppose Income tax on firm income is Rs. 7500/- in AY 2012-13.

Please advise me that it should be debit in P&L appropriation A/c of FY 2011-12
or
It should be debited in capital A/c of each partner proportionatly of FY 2011-12.
or
It should be debited from the P&L a/c of FY 2012-13 as it is being paid in July 2012.

Waiting for your respconce.
Thanks

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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29 July 2012 In case of firm's Income Tax Act, does not have any specific disclosure requirement.
.
In ther first two alternatives you have to show "Provision for Income TAx A/c as on 31.03.2012.
.
In place of the 3rd alternative I would suggest you to debit the amount to Income Tax and apportion the tax amount to partners from Income Tax A/c. This will reduce your burden while making Computation of Income..
.

Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2012 Then it should be debit from the capital a/c of FY 2012-13 of each partner in their proportions.