Jaspal Singh (Assistant Manager- Accounts) (25 Points)
30 September 2010what is the journal entry for additional tax paid for last years assessments anc can we book this payment as an expenses in current year books or do we need to book it to the pertaining year only
Anil Kumar Meena
(Assistant Manager)
(475 Points)
Replied 01 October 2010
I think this should be the current year expense..
Dinesh Kumar Agarwal
(Article clerk)
(117 Points)
Replied 01 October 2010
if income tax paid is not allowed as expense so it should be charged to owner's equity however interest part can be booked as expense.
Jaspal Singh
(Assistant Manager- Accounts)
(25 Points)
Replied 02 October 2010
Thanks, but what would be the journal entry for these kind of payments?
CA. Abhinay Singh
(Manager at Godrej & Boyce.)
(40 Points)
Replied 04 October 2010
The entry will be...
Provision for Tax (L.Y.) A/c ...........Dr. xxx
Profit & Loss (for excess tax liab.) A/c ............................Dr xxx
To Advance Tax Paid/TDS A/c (if any) xxx
To Cash/Bank A/c xxx
(Cash or Bank A/c shall credited with the amount of excess tax paid pertaining to last year.)
CAclubindia
