Taxation entries nullify

I am stuck with tally entry and do not know how to do it.

In the year 17-18 in company's balance sheet I mentioned Advance tax as 30000/- This reflected in Assets side.

I made a provision of 9850/- This reflected at Liabilities side.

My total tax for the year 17-18 was 39850 as per computation. 30k was paid in 17-18 and 9850 was paid in 18-19 thru bank.

I received the order 143/1 today for FY17-18.

I neither got refund nor I have to pay anything. I am at the finalising steps of balance sheet for 18-19.

I would like to know what entry to pass in tally which will remove 9850 from Liabilities and 30k from Assets in Balance Sheet of 18-19 I am not an accountant and learned tally and account by hit and trial. Plz help. Thanks

Replies (3)
if your tax liab. for 17-18 is 30k and the same is paid through advance tax, in that case you can nullify it with you tax liability.

and for provision amount you can tfr that to p&l a/c by reversing it.
Self assessment tax payable a/c Dr 30000
To Advance Tax 30000 and
Provision for Income tax a/c Dr 9850
To Self assessment tax payable a/c 9850 and
Self assessment tax payable a/c Dr 9850
To Bank a/c 9850

Sorry for the late reply Madamshetty Kavya and thank you so much.

I have passed the entries in tally and what I wanted to remove from the balance sheet has gone by passing the entries supplied by you, however, when I see my "Indirect Expenses" section in Profit & Loss statement, I see that my tax as 30000/-. Shouldnt it be 39850?

My ledgers are as follows:

Provision for Income Tax FY1718 => made under Current Liabilities

Advance Tax => made under Current Assets

Self Assessment Tax for FY1718 => made under Indirect Expenses

Plz let me know.

Thanks

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