Journal entry

income tax paid
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Quick Summary
This discussion explains the correct journal entries for accounting for income tax. It covers the initial provision for income tax and the subsequent payment of that tax after assessment. The entries detail debiting the relevant tax account and crediting either the provision or the bank account as appropriate.

Provision for Tax A/c. Dr
To Bank A/c

P/L A/c. Dr
To Provision for Income tax
Income tax A/c Dr
To provision for Income Tax A/c Cr

( provision for Income Tax )


when we pay Income Tax after assesment

Provision for Income Tax. A/c Dr
To Bank A / c Cr

( payment of Income Tax )

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