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Payment of taxes by company

Others 245 views 3 replies
how company record the payment of taxes and in which account it is debited p&l a/c or any other??
Replies (3)

DR CURRENT TAX

CR TAX PAYBLES

AND 

PURCHASES DR

GST DR

TO PAYABLES CR

AND

BANK DR

GST CR

SALES CR

OUTPUT GST-INPUT GST = GST PAYABLE IT SEEMS

UNTIL YOU DO THE ABOVE FORMULA DURING FINALISATION

"Input GST is current assets and output GST is current liabilities"

 

 

Purchase account will not be debited.
I am asking about direct tax


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