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Categories >> Accounting >> Accounting General
 
 


 

 
 Audit interview questions  Audit Interview Questions (428)
 CompanyAffairs CS interview questions  CompanyAffairs CS Interview Questions (158)
 Taxation interview questions  Taxation Interview Questions (1905)
 Accounting General interview questions  Accounting General Interview Questions (2833)
 Accounting AllOther interview questions  Accounting AllOther Interview Questions (4369)
Question
What will be journal entry of provision for income tax in 
current year and Adjustment entry in next year
 Question Submitted By :: Accounting-General
I also faced this Question!!     Answer Posted By  
 
Answer
# 1
Provision entry for current Year
Income Tax A/c ----Dr
To Income Tax Payable A/c

Adjustment entry in next Year
Income tax payable---Dr
To bank A/c
 
Is This Answer Correct ?    78 Yes 16 No
K.kavitha
 
Answer
# 2
1 current year
Income tax a/c dr
to provision for taxation a/c

2.next year(adjustment entry)

a)Provision for taxation a/c dr
to income tax payable a/c

b)Income tax Payable a/c Dr
to Cash a/c


Mainly there are 3 entries one is for creating provision,
and the second one is reversal of the same in next year or
month after calculating actual tax payable, and the last one
is for payment of tax to the Government authorities
 
Is This Answer Correct ?    27 Yes 12 No
Praveen.kp
 
 
 
Answer
# 3
FOR CURRENT YEAR WHEN PROVISION MADE

(IN P & L APPROCIATION ACCOUNT)

PROFIT & LOSS ACCOUNT DR. .......
TO PROVISION FOR INCOME TAX ACCOUNT ........

FOR NEXT YEAR WHEN PAYMENT MADE.

PROVISION FOR ICOME TAX ACCOUNT DR.
TO BANK ACCOUNT
 
Is This Answer Correct ?    22 Yes 9 No
Gautam Kumar
 
Answer
# 4
1.At the time of Creation of provision for income tax in previous year for coming year.


Profit & Loss A/c Dr.
To Provision for Income tax
2.At the time of Actual Income Tax Calculated.


provision for Income tax A/c Dr.
To Income Tax

3.At The time of Payment .

Income Tax A/c Dr.
To Bank
 
Is This Answer Correct ?    11 Yes 0 No
Anees Mt
 
Answer
# 5
Kavitha pl observe my answer. According to you the amount
of Income Tax is confirmed but not paid. But according to
the question some amount was provided in the shape of
provision. It is not exact figure.it may be raised or
lowered.
sankeerthana
www.therealaccountants.com
 
Is This Answer Correct ?    10 Yes 4 No
Sankeerthana
 
Answer
# 6
Hi Sankeerthana,

Here the provision you have created in the earlier year you
should reverse with corresponding payment.

By end of Sep 30 you know exact amount of Tax you need to
pay simply pass one more JV.
 
Is This Answer Correct ?    7 Yes 6 No
Sreeram
 
Answer
# 7
Normally following entries for Income Tax puposes:
1. Deposing Advance Tax:
Advance Tax (A.Y. ____) Dr.
To Cash or Bank

2. Provision for Current Year I.Tax:
Income Tax (Expenses) Dr.
To Provision for Tax (A.Y. _____)

3. When assessment completed and refund received:
Provision for Tax (A.Y. _____) Dr.
Bank Dr.
To Advance Tax (A.Y. ____)
4. When assessment completed and some demand raised:
Provision for Tax (A.Y. _____) Dr.
To Advance Tax (A.Y. ____)
To Income Tax Additional Demand (Expenses)
Source(s):
Self
 
Is This Answer Correct ?    7 Yes 6 No
Mohit
 
Answer
# 8
above all are incorrect but Anees Mt is absolutely correct. If any one want to know about this adjustment please go by Anees Mt, remaining all are funny. 
Is This Answer Correct ?    3 Yes 2 No
Kishore Kumar
 
Answer
# 9
For creating the provision of current year
i)Current Tax A/C Dr
To Provision for Income tax A/c
ii) Advance Income tax A/C Dr
To Bank A/C
Next year adjustment of Previous yr(because income is assessed in next yr)
a)If advance income tax paid is less than the tax liability
i)Advance income tax A/c Dr
To Provision for Income tax A/C
To Income Tax Payable A/C

ii)Income tax payable A/C
To Bank A/C
a)If advance income tax paid is more than the tax liability
i) Advance income tax A/C Dr
Income tax refundable A/C Dr
To Provision for Income tax A/C

ii)Bank A/C Dr
To Income Tax refundable A/C
 
Is This Answer Correct ?    2 Yes 1 No
Arun Chauhan
 
Answer
# 10
FOR CURRENT YEAR WHEN PROVISION MADE

PROFIT & LOSS ACCOUNT DR. .......
TO PROVISION FOR INCOME TAX ACCOUNT ........

FOR NEXT YEAR WHEN PAYMENT MADE.

1.INCOME TAX A/C DR
TO BANK A/C
2.PROVISION FOR INCOME TAX A/C DR
TO INCOME TAX A/C
 
Is This Answer Correct ?    6 Yes 8 No
Vinay.r
 

 
 
 
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