Balance sheet tallying

407 views 3 replies

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

Replies (3)
Depreciation is a non cash expenditure.
So it's time to rectify the mistake.
.claiming of depreciation is as per income tax act 1961.

So is it not claimed against the profits? Ie, wont the profits increase baxk after adding allowable or deductable expenses? 

Tally with the FA SCHEDULE.

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