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VEDANTA DESHIKA (Practice)     10 October 2011

As 22 _ c/f loss

Dear Experts and Friends.

Pls give me the scheme of entries and balance sheet disclosure for the below hypothetical problem

 

A ltd purchases a plant in Year-1 for Rs 10 lakhs

In year 1 A Ltd incurs a loss of Rs 1lakh

In year 2, there is a net profit of 150000 ( this is after adjustment of depreciation)

depn rate - 13.91 % as per Co's Act , 25% as per IT Act

Tax rate = 35%

 

Thanks in advance

 

 

 

 

 



 3 Replies

C.A. LINESH PATIL

C.A. LINESH PATIL (CA)     10 October 2011

Dear ,

DTA & DTL is created on Accounting differece under two set of books i.e. Accounts & Income Tax.Also you have not clarifed under which book this loss has been booked.However if this loss relate to Income tax then under income tax loss is allowed to be carried forward & set off.

Therefore in this case you can create DTL  for depreciation.

DTA would be created by Debitting DTA Account & Credit P&L Accounts in Accounts.

Thanks 

VEDANTA DESHIKA

VEDANTA DESHIKA (Practice)     10 October 2011

Sir , now i have given correctly.. pls clarify Sir.. How much DTA &/ DTL is created and balances for Year 1 & year 2

 

Year 1  = Net Loss Rs. 100000/-(including depreciation) (as per financial books)

Year 2 = Net profits Rs 150000 (including depreciation) (as per financial books)
 

A ltd purchases a plant in Year-1 for Rs. 10 lakhs

depn rate - 13.91 % as per Co's Act , 25% as per IT Act

Tax rate = 35%

VEDANTA DESHIKA

VEDANTA DESHIKA (Practice)     10 October 2011

Net profit /loss means ...i have considered PBT but after dep


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