Balance sheet tallying

Yasaswi Gomes new (Finance ) (4474 Points)

22 January 2023  

Hi

Dr. Taxes Cr. Bank

Dr. Depreciation Cr. Asset

My question is simple! How did everyone tally your balance sheets when you got tax allowable depreciation claimed. Eg. Asset is reduced and profit is reduced and that is perfect tallying. But TAD increases the profits back. So how can anyone tally a balamce sheet under this condition? How does corporate tax help with this issue? 

Txs