MAT Credit Entitlement
This query is : Resolved
11 May 2010
Respected All,
The company had created MAT Credit Entitlement as an asset and shown under loans & advances in previous years.
In the current year, the company is paying normal taxes and hence utilising the amount of Mat Credit.
what are the journal entries it needs to make in the books of accounts?
AND
What will be the presentation in Balance sheet and in Profit & Loss account?
Regards
The company had created MAT Credit Entitlement as an asset and shown under loans & advances in previous years.
In the current year, the company is paying normal taxes and hence utilising the amount of Mat Credit.
what are the journal entries it needs to make in the books of accounts?
AND
What will be the presentation in Balance sheet and in Profit & Loss account?
Regards
11 May 2010
Reverse the entry which u passed for creating MAT credit and the balance in MAT credit will be reflected in assets only.
11 May 2010
The entry passed was:
MAT Dr.
To P/L account.
Now I have passed:( as per guidance note on mat)
PFT Dr.(full amount)
To P/L account
MAT (adjusted amount reversed)
To PFT
Is it Coorect or Ihave to reverse MAT through P/L Account
MAT Dr.
To P/L account.
Now I have passed:( as per guidance note on mat)
PFT Dr.(full amount)
To P/L account
MAT (adjusted amount reversed)
To PFT
Is it Coorect or Ihave to reverse MAT through P/L Account
11 May 2010
The net effect of both the ways is the same ony on the P & L. Follow the way as shown in the guidance note.
You can pass it thorugh P & L Account also no problem but better to follow guidance note only.
You can pass it thorugh P & L Account also no problem but better to follow guidance note only.
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