Entry for Deferred Tax, current income tax in account books - Professionals - Accounting - TIK Share

Entry for Deferred Tax, current income tax in account books


Rahul Rai

2013-11-07

The clinet have Deffered Tax Asset and also current tax liability.

What will be the entry one should pass to account Deffered Tax and current account liability?


And what will be the entry when current Income tax is paid?

CA Pulkit Sharma

2013-11-07

Deferred Tax is Asset so the entry will be:

Dr. Deferred Tax Asset Account

Cr. Deferred Tax P/L Account

 

Abd fro current income tax liability the entry will be:

Dr. Current Income Tax P/l Account

Cr. Provision for Current Income Tax Liability

 

When the Tax is paid the entry would be:

Dr. Provision for Current Income Tax Liability

Cr. Bank Account

 

*P/l = Profit and Loss Account

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