Entry for Deferred Tax, current income tax in account books
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?
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