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PROVISION FOR TAXATION

A/c entries 6389 views 1 replies

Cagaurav

58 Points Joined March 2007

Hi This is GAurav

I am pe2 qualified in may 2005. but i have a problem
i am working in a smalll firm
can any one tell me how to set of provision for taxation with advance tax, tax dedtucted at source and deferred tax liablity. and how to show these things in accounts as per company act.

At which time entry of this effect will be passed on 31st march or 31st october. plz. tell me these things thru journal entries.

My question is this

PROVISION FOR TAXATION==> RS. 3000000
ADVANCE TAX PAID====> RS. 800000
TDS====>: RS. 276000
DEFERRED TAX LIABILITY====>RS. 729000

PL.Z TELL ME THE ABOVE TREATMENT OF PROVISION FOR TAXATION

Best Regards
Gaurav Rustagi
cagaurav1234 @ gmail.com

Replies (1)

Yashwanth Jain

70 Points Joined March 2007

Its very simple debit what is credited earlier and credit what is debited earlier,here

provision for tax        3000000
deferred tax liability  729000

        To Tds receivable                276000
        To Advance Tax                  800000
        To Income Tax                    2653000