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Journal entry for professional tax

Accounting Entries 9138 views 4 replies

I enrolled for porfessional tax recently and had to pay the previous 2 years dues. What will be the journal entry for the arrears paid? No liability was shown in the previous perid

Replies (4)
Quick Summary
Discussion on journal entry for professional tax arrears. Suggested entry is PT expense debit to PT payable and payment via bank. Queries also raised on classification and meaning of professional tax credit.

due entry will be
pt a/c. Dr
to PT payable A/c


payment entry will be
PT payable

to bank

Exactly precise.

what is the meaning of professional tax credit mean

Under which head will PT A/C and PT Payable A/C come under?


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