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What will be journal entry of provision for income tax in
current year and Adjustment entry in next year
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Answer / k.kavitha
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 ? | 224 Yes | 56 No |
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 ? | 124 Yes | 34 No |
Answer / anees mt
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 ? | 93 Yes | 17 No |
Answer / mohit
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 ? | 40 Yes | 18 No |
Answer / praveen.kp
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 ? | 47 Yes | 29 No |
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 ? | 19 Yes | 11 No |
Answer / aj
At the time of providing provision for tax the entry is(current year)
dr-tax a/c
cr-provision for tax a/c
at the time of payment (next year)
dr--provision for tax ac
cr-bank a/c
| Is This Answer Correct ? | 13 Yes | 7 No |
Answer / manish
Can we make entry like this in case of additional demand raised:
Additional income tax demand (ass yr)dr
To. Bank/cash cr
| Is This Answer Correct ? | 10 Yes | 4 No |
Answer / sreeram
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 ? | 10 Yes | 12 No |
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