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Provision for tax accounting

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student
66 Points Posted on 09 February 2016
Why provision for tax is shown in profit and loss account, although it is part of appropriate of profit?
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On 09 February 2016 at 22:06 Report
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student
66 Points Posted on 09 February 2016
It is also not included by income tax in calculation of business income.
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On 09 February 2016 at 22:10
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STUDENT
93 Points Posted on 10 February 2016

INCOME TAX PAYMENT IS A PERSONAL EXPENDITURE IT IS DISALLOWED  AND IT IS AN AMOUNT OF PAYMENT WHICH MADE AS AN APPROPRIATION BEING PERSONAL EXPENSES.

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On 10 February 2016 at 20:32
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student
66 Points Posted on 10 February 2016
Thanks sunita, But I was asking for provision for tax,as it is made out of profit loss account. Like entry of provision P/L a/c dr To provision for tax
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On 10 February 2016 at 22:43
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student
66 Points Posted on 10 February 2016
Thanks sudipta, But I was asking for provision for tax,as it is made out of profit loss account. Like entry of provision P/L a/c dr To provision for tax
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On 10 February 2016 at 22:45
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STUDENT
93 Points Posted on 10 February 2016
Payment of taxes for the current year is made after the financial year end I.e. 31st march,in the next f.y.As per AS29 a provision is created for writing of estimated expense to be incurred due to income earned during the f.y.which is a past event
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On 10 February 2016 at 23:44
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student
66 Points Posted on 10 February 2016
thank you for clarifying .
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On 10 February 2016 at 23:47


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