Income tax refund f.y-11-13

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 August 2013 Dear Sir,

kindly advice me and pass the JV for my below queries

actually for f.y-11-12 there were profit of Rs.172111 and same i have shown in reserve and surplus out of which the tax comes Rs.53182/- against which i total TDS Receivable was Rs.115796 and total refund was claim is 115796-53182=62610 for which i have not made any provision in f.y-11-12 and now i have received my claim amt Rs.62610.
now in my B/S. two entry is stands 1)Reserve and surplus Rs.172111 and
2)TDS Receivable Rs.115796.
kindly advice me to nullify it.

Ganeshbabu K

Ganeshbabu K (Expert)
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16 August 2013 you can nullify with bank receipt of income tax refund received

Querist : Anonymous

Querist : Anonymous (Querist)

16 August 2013 i will adjust Rs.62610 against 115796 what about balance 53182 and reserve and surplus Rs.172111 standing in balancesheet

Ganeshbabu K

Ganeshbabu K (Expert)
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16 August 2013 Entry will be as below
1)***
Dr.Provision for income tax 53182
Dr.Income tax refund receivable 62610
Cr.TDS receivable 115796

2)

Dr.Bank A/c 62610
Cr.Income tax refund receivable A/c 62610

(being income tax refund received)

Thanks & regards
Ganesh babu k

Querist : Anonymous

Querist : Anonymous (Querist)

16 August 2013 thanks sir,
MY TDS receivable nullify and provision of IT 53182 is generated in Current Liabilities along with 172111 reserve and surplus is kindly advise me to nullify the same.

Ganeshbabu K

Ganeshbabu K (Expert)
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16 August 2013 it seems you have not provided provision for income tax in previous year..
.
.
adjust reserves & surplus opening with provision as per previous year audit financial statement

Querist : Anonymous

Querist : Anonymous (Querist)

19 August 2013 i hv not made any provision in f.y-11-12 & my my b/s in finalised for f.y-12-13 now i want to make adjustment pertaining to f.y-11-12 in f.y-13-14.
1-profit for f.y-11-12 showing in b/s is 172111
2-tds receivable Rs.115796
3-tax on 172111 is 53176
4-refund claim 115796-53176=62620
now in f.y-13-14
i hv made entry as u mentioned
1-
prov. for tax f.y-11-12-(CL) 53176 Dr.
prov. for refund f.y-11-12 62620 Dr.
TDS receivable f.y-11-12 115796 Cr.
after doing all two entry showing in my b/s
1-reserve & Surplus 172111
2-Provision for tax f.y-11-12 53176
how i can nullify it kindly suggest me.

Ganeshbabu K

Ganeshbabu K (Expert)
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24 August 2013 but how it is possible to close books with out passing prov for tax in books,,ask your auditor and take his help how he closed books ,,and pass entries accordingly
.
see make accounts tallied from signed audited financial statements

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