Salary

This query is : Resolved

Share Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

22 September 2012 plz tell me the treatment of salary in proprietorship firm

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

22 September 2012 Salary to preoprietor tantamounts to DRAWINGS. Salary to others is quite possible.

Pankaj Gupta

Pankaj Gupta (Expert)
Follow

22 September 2012 Salary paid to any employee is possible that too a fair salary. But if salary is paid to proprietor than such salary will be part of drawaings.

Querist : Anonymous

Querist : Anonymous (Querist)

28 September 2012 in proprietorship.sir i have paid income tax fy 2011-2012 on 29-09-2012 what is the journal entry of this tax.

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

28 September 2012 on 31/3/2012 make a provision entry for income tax. on 29/9/2012 pass the entry through this provision account.

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2012 should i do like this

capital a/c dr
to cash cr

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2012 in fy 2012-13

Pankaj Gupta

Pankaj Gupta (Expert)
Follow

29 September 2012 For other than income tax purpose, income tax paid is treated as a business expense. Hence such expense should be paid from profit and loss account and should not be shown as drawings.
Moreover, the treatment specified by amol sir is correct. Because the tax expense relates to the fy 2011-12, hence treatment should be from the profit of same fy.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok