Balance sheet tallying

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)
Quick Summary
This discussion tackles the common accounting puzzle of balancing a balance sheet when tax allowable depreciation is claimed. The core issue is how to reconcile the asset and profit reduction from depreciation with the subsequent increase in profit due to tax adjustments. Participants explore how depreciation, being a non-cash expense, affects profit and how to correctly tally this using the Fixed Asset schedule and understanding the Income Tax Act 1961.

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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