suppose, I have private company...
profit 50000( f.y. 2017-18)
means total tax approximately 15000
advance tax ( f.y. 17-18) 10000
tds receivable (f.y. 17-18) 2000
means self assessment tax 3000
now I will pass entries as followings
1. profit & loss account dr 15000
to provision for tax 15000
2. profit & loss account dr 35000
to reserve and surplus 35000
3. self assessment tax dr 3000
to cash/bank 3000
4. adjustment entry....
provision for tax dr 15000
to advance tax 10000
to self assessment 3000
to tds receivable 2000
my question is.....when we will pass adjustment entry for provision for tax ????
on 31st march 2018 or 31st march 2019????
CAclubindia
