income tax

A/c entries 871 views 5 replies

A firm pays tax.  Under which head it has to be created? Shall it be under the head current asset? Is it ok if i create it as income tax paid under the head current asset?

Replies (5)

First, a liabilty for tax is created.... if u pay more than this or pay advance tax, then it is a current asset. it will be shown with other current assets in the balance sheet

U r absolutely right

Thanks a lot...

in case of partnership firm if advance tax is paid it should be shown u/h CA or Loans & advances & in next year or after assessment net tax payable or paid including advance tax should be tfd to p/l a/c or debited to partners capital a/c in P.S.R & if there is refund  it also should be shown under same head as above mentioned

Thank you


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