Advance tax entry end of the year

NANDURI RAVI SURYA NARAYANA MU (ACCOUNTANT) (194 Points)

19 July 2010  

What is the procedure for advance tax entry for the year end closing the books in a company.

 

Under the Current Assets :  Advance Tax A/C.  Dr. 10,00,000/-

                                                          To Bank A/C.   Cr. 10,00,000/-

how to reverese the end of the year the same current assets to P&L Account

                                                 Advance Tax A/C.  Cr. 10,00,000/-

                                                     By P&L Account  Dr. 10,00,000/-

 

is it correct way as per accounting standards, after the same add to the total income for the purpose of incometax computation.