Provision creation

Others 535 views 3 replies

Jamanur Ahmed

Faculty

35 Points Joined August 2011

hello,

Sir/Madam, my question is....

there is a provision for income tax in the balance sheet for the F.Y. 2009-10 Rs20000 and also Advance income tax is Rs.25000......

during the year advance income tax paid is again (i.e F.Y 2010-11) Rs.250000 and also another income tax paid relating to F.Y.2009.10 Rs5000.

but in the adjustment there is a line saying....assessment order received from the ITO relating to accounting year 2009-10 and showed that the total tax comes to Rs.30000.

could you please tell me what should be adjusted to what and what are the journal entries to be passed..i am totally confused in this matter.

Replies (3)

CA Sripal Jain

Associate Finance

709 Points Joined January 2009

can u plzz let me know when was the order received,second what is the actual income tax paid for 09-10, and third is what is the advance tax and TDS for 09-10

2. then u let me know all the figures as i said for 10 -11 and dont club as both years r diff

Jamanur Ahmed

Faculty

35 Points Joined August 2011

Sir/madam,

it is sum that I am practicing there is no TDS in it...

first, the order is shown to be received in the F.Y2010.11 (date has not been mentioned here) it is given in the adjustments.

secondly, advance income tax paid during 2009-10 is shown in the Balance sheet of 2009-10 as Rs25000................and during the current financial year again advance income tax has been paid several times which comes to an amount of Rs250000.