Impact of deferred tax on account of new companies act, 2013

Please Help.!!!

What will be the effect of Deferred tax adjusment on account of transfer of Depreciation/ Amortisation to opening reservers?

Please help which entry from below should i need to account in the books of accounts.

(For those assets whose useful life has been expired) 

Entry No1

Profit and loss (Opening) A/c    Dr

 To Accumulated depreciaiton / Asset A/c

 

Entry No 2

 Profit and loss (Opening) A/c Dr.

Deferred tax Asset A/c          Dr.

To Accumulated depreciation / Fixed Asset A/c

To Provision for Tax A/c

To Deferred tax (liabilty ) A/c

 

Entry 3:

(it is upto you :) )

 

please mark the respective Accounting standard/ regulatory guidance or regulatory update. 

 

Thanks,

Saran

Replies (1)

sir according to me this answer is purely wrong we need to decide whether DTA will create or DTL with the amount of tax on depreciation amount then further we will decide the entries.  As i think it is not possible that both will be created from a same category of adjustment( Adjustment of depreciation from retained earnings.)

pleaseclarify only whether DTA or DTL which will create as per this transaction effect of depreciation adjustment to retained earnings.

 

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