I have a query relatered to 2016-17 and 17-18 Partnership firm entry for profit and tax.
My firm incoperated on feb 2016 and Net book profit for 2016-17 was Rs. 4336. We are 3 partners with sharing ration 50%,25%and 25%.
I didnot pass any Provision for tax entry in 2016-17 and I paid Income Tax Rs2310 for 2016-17 paid on June 2017 and Passed Provision for tax entry Rs.10000 for 2017-18 and having profit Rs. 390000 and Remuneration paid for Rs.324000(If i give this acutally no remuneration given yet nor entry passed yet)
I passed entry for profit sharing for 2016-17 on year end 2017 i.e 4336-2310=2026 for partner A Rs. 1013 and for B anc C partner Rs. 506 and Rs507 but the difference of Rs. 2310 is reflected in 2017-18 balance sheet as less transfered profit. can anyone suggest how to adjust this as i think i have passed wrong entry for sharing but what about the Tax i have paid .
For F.y 2017-18 what will be entry for Provision for Tax and the entry of the above profit sharing, in which head i should create provision for tax (Under expenses or liablity)
Kindly give journal entry for 2016-17 and 2017-18 for 2016-17 return already filled what is the solution for the same in f.y.2017-18
CAclubindia
