How to adjust the Deferred Tax Liability of Previous Financial Year in Current F.Y.
(There is just credit balance reflected on Balance Sheet of Previous Year, no adjustment seems to have made)
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Deferred Tax
Replies (6)
Supposing if previous year’s Deferred tax liability Cr. In the balance sheet is 1000₹, PBT is 10,000, Current tax rate is 20%, then:
PBT 10,000₹
-2000₹ (10000*20%)
- Deferred tax 1,000
= 7000₹ PAT.
when you have previous years balance as 500₹ provision for deferred tax in SOFP, the:
10000₹
-2000₹
-(500-1000) 500₹
= 7,500₹ PAT.
Hi Rutuja Prabhune -
I made complete analysis with example on deferred tax adjustments solely for your issue..
just visit my blog here.
-https://sanjithkotni.blogspot.com/2020/04/deferred-tax-accounting-as-per.H T M L?m=1
I made complete analysis with example on deferred tax adjustments solely for your issue..
just visit my blog here.
-https://sanjithkotni.blogspot.com/2020/04/deferred-tax-accounting-as-per.H T M L?m=1
You need to give more details.
what is the nature of p.y. deferred tax liability and the reason of reversal.
adjustment is simple.
deferred tax expense cr &
def. tax liability. dr.
but the reason needs to be understood
what is the nature of p.y. deferred tax liability and the reason of reversal.
adjustment is simple.
deferred tax expense cr &
def. tax liability. dr.
but the reason needs to be understood
Hi rutuje.
Visitmyblog- sanjithkotni.blogspot.com
I explained in the blog only for your issue.Please visit and get it clarified.And if you have any further doubt comment there or here
Visitmyblog- sanjithkotni.blogspot.com
I explained in the blog only for your issue.Please visit and get it clarified.And if you have any further doubt comment there or here
Sure Sir, would try to get more details about it and will update for sure,once its clear to me,Thanks every one.
Click below link for complete information with practical calculation
https://youtu.be/RGpQldmfuHw
https://youtu.be/RGpQldmfuHw
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