Differences in opening balance

dear friend

You apply AS-5 and sort out the problem.

suppose tax paid for two years   is Rs. 200/-, refundable  amt is 20/-

incoem tax refundable a/c  dr.    20

capital/ drawing a/c  dr.             180

advance tax      cr.                                       200

(assuming that self asst tax is appearing as advance tax in asstes side of ur Balancs Sheet)

Dear Sudeep, Accounting Standard is not applicable in this case.
It's very simple, any self-assessment tax paid/refund received has to be routed through the Capital account of the assessee. Moreover, tax provisions made are disallowed for tax purposes. So, in sole-proprieter's case, provisional entries are rarely passed as the same would be disallowed. :)

Dear Friends,

Tax entries are never routed through capital account. Its just like an expenditure. Debit the 'Taxes paid' (indirect expense) account. This is will appear in the profit and loss account as expenditure and will be disallowed u/s 40.

In case of proprietorship concern  provisional entries are not passed, Tax /refund has to be touted thru capital account of the proprietor , if u had passed entry before it will be disallowed.

for further queries i can be reachd at vaiibhavgupta @ gmail.com

Sir 

I have started working on a company in abroad They have been operating the business from last June 2018 and no accounts or bookkeeping methods have been used till now. I calculated opening stock with available Purchase and Sales of January to March and comparing with closing stock. And I also found the Current Liabilities, Current Assets, Payable, Receivables, Fixed Assets and Depreciation etc.

Currently i am using Tally ERP 9. I have start the accounts from January and when i tried giving Opening balances of Stock in Hand, Cash in Hand,Bank Accounts, Current Assets, Fixed Assets , Current Liabilities etc it showed a difference in opening balances ( i haven't put the capital account amount as i dint got it,Its a sole proprietary , so the closing stocks and everything should automatically adjust with capital account right?)

Read more at: https://www.caclubindia.com/forum/previous-year-closing-balance-in-this-year-opening-186824.asp?offset=1