postin of transaction
This query is : Resolved
18 July 2009
in the current year i have make a provision for tax of Rs. 50,000 and paid advanced Tax of Rs.40,000 tell me the effect of transaction that is provision will show on P&l dr and B/s Liabilities what about advanced Tax Paid? post the entry for provision for tax and Advanced Tax separately
Guest
Guest
(Expert)
18 July 2009
Entries :-
1). At the time of provision :-
Taxes - (P & L A/c) - Dr
To Provision for Tax (Other C.Liabil) - Cr
2). At the time of Payment :-
Advance I. Tax (F.Yr.09-10) - (Other current Assets) - Dr
To Bank A/c - Cr
3). At the time of F.year close :-
Provision for Tax (Other C.Liab) A/c - Dr
To Advance I. Tax (F.Yr. 09-10) - (Other C.Assets) - Cr
1). At the time of provision :-
Taxes - (P & L A/c) - Dr
To Provision for Tax (Other C.Liabil) - Cr
2). At the time of Payment :-
Advance I. Tax (F.Yr.09-10) - (Other current Assets) - Dr
To Bank A/c - Cr
3). At the time of F.year close :-
Provision for Tax (Other C.Liab) A/c - Dr
To Advance I. Tax (F.Yr. 09-10) - (Other C.Assets) - Cr
18 July 2009
Advance Tax Paid is shown as loan & advances under current asset in Asset side of balance sheet.
Now entry is
Income Tax Dr 50000
Provision for tax cr 50000
Advance Tax Paid A/c Dr. 40000
To cash/Bank cr. 40000/-
Now entry is
Income Tax Dr 50000
Provision for tax cr 50000
Advance Tax Paid A/c Dr. 40000
To cash/Bank cr. 40000/-
18 July 2009
Seems Mr.Bansal's view is appropriate.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Price inclusive or exclusive of GST while made entry in P& L Account
- TDS Challan - change of FY 2025-26 to TY 2026-27
- Applicability of GST on Salary Reimbursement Component
- Minimum tax payable to file Updated return
- Tds on commission charges
- TDS on Complimentary "Desi Ghee and Gold Coin" Provided to KBC Contestants
- Dep. as per companies act
- Salary from Qatar in Dollars in India
- Renovation exp. in flat by family member
- Need Professional Opinion AY 2012-13 Old Demand
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
Quick Links
Featured
12 September 2026
Assistant Manager - Finance & Compliance
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
View Details
09 September 2026
Semi Qualified CA / CA Inter - 2 Groups Cleared
Getmyca Consultant Pvt Ltd
New Delhi
CA Inter
View Details
ARTICLESHIP
07 September 2026
CA Articles
Kothari Jain Patil & Chartered Accountants
Pune
CA Inter
View Details
ARTICLESHIP
15 September 2026
Freelance Taxation Content Writer Intern
Interactive Media Pvt Ltd.
New Delhi
CA Inter
View Details
CCI
Pro
CAclubindia
