Previous year provision
This query is : Resolved
19 July 2008
Goood Morning Sir,
When we maked Balnace Sheet as on 31.03.2007, we have provided the provision for taxation and provison for FBT.
Now, next year shows in the trial balance as a opening balance, so you requested to guide me that in current year how should it adjusted and and what will be the entry in current year for provision of taxation and fbt
Pleas reply us as early as possible
Thanks
When we maked Balnace Sheet as on 31.03.2007, we have provided the provision for taxation and provison for FBT.
Now, next year shows in the trial balance as a opening balance, so you requested to guide me that in current year how should it adjusted and and what will be the entry in current year for provision of taxation and fbt
Pleas reply us as early as possible
Thanks
19 July 2008
The provision should be reversed in next year by adjusting the taxes paid(including the self asstt tax or refund paid or received in the next year) against the provision for that relavant year. Current Year provision is to be made for the CY's income out of the profits for the year.
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