What is deffered tax liability / assets?
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Answer / h.r. sreepada bhagi
Deferred Tax liability is tax that may have to be paid in
future on a/c of excess of book profit over profit arrived
at as per the provisions of Income Tax Act. 1961. Deferred
Tax asset is due to excess of profit as per Income Tax
computation over Book Profit.
One reason of this is difference in the amount of
depreciation on Fixed Assets calculated as per the Income
Tax Act, 1961 & the Companies Act, 1956. Deferred Tax Asset
& Liability can be set-off as per the provisions of the
Income Tax Act.
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Answer / guest
Defferred taxes are future tax liability or asset that
results from temporary differences between book value
(accounting) of liability or asset and their tax value.
| Is This Answer Correct ? | 4 Yes | 4 No |
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A firm had the following Balances on 1 January 1994: (i) Provision for bad and doubtful debts Rs 2,500 (ii) Provision for discounts on debtors Rs 1,200 (iii) Provision for discounts on creditors Rs 1,000 During the year, bad debts amounted to Rs 2,000, discounts allowed were Rs 100 and discounts received were Rs 200. During 1995 bad debts amounting to Rs l,000 were written off while discounts allowed and received were Rs 2,000 and Rs 5,000 respectively. Total debtors on 31 December, 1995 were Rs 48,000 before writing off bad debts, but after allowing discounts. On 31 December, 1995, this amount was Rs 19,000 after writing off the bad debts, but before allowing discounts. Total creditors on these two dates were Rs 20,000 and Rs 25,000 respectively. It is the firm’s policy to maintain a provision of 5% against bad and doubtful debts and 2% for discount on debtors and a provisions of 3% for discount on creditors. Show the accounts relating to provisions on debtors and provisions on creditors for the year 1994 and 1995.
Can u please send me a set of accounting base questoin with answer,genraly ask by interviewer?
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