Deferred Asset for 2017-18
Example
particulars As per Books Accounts As per Income Tax
profit after expenses but before
Depreciation 80,00,000 80,00,000
(-) Depreciation 15,00,000 10,00,000 Difference 5,00,000
Profit before Tax 65,00,000 70,00,000 Difference -5,00,000
Income Tax @ 30% 19,50,000 21,00,000 Difference -1,50,000
Now , following entries will be pass in the Books of Accounts
1) profit & Loss A/c Dr 21,00,000
To provision for Income Tax Ac Cr 21,00,000
( provision for Income tax )
2) Deferred Tax Asset A/c Dr 1,50,000
To Profit & Loss A/c Cr 1,50,000
( here ,we have created deferred tax asset for 2017-18 )
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