03-31-2004, 10:06 PM
Now suppose, provision as per books is Rs.1200/- and advance tax is Rs.2000/-
and ITO determines the liability of Rs.1300/- and adjust the same againt the advance income tax and determine the refund of balance amount of advance income tax then following entry should be passed
Debit Provsion for taxation Rs.1200/-
Debit Income tax refundable Rs. 700/-
Debit Income tax expense (Prior year) Rs.100/-
Credit Advance income tax Rs.2000/-
when the cheque has been received from IT dept
Debit Bank Rs.700/-
Credit income tax refundable Rs.700/-
SMR
and ITO determines the liability of Rs.1300/- and adjust the same againt the advance income tax and determine the refund of balance amount of advance income tax then following entry should be passed
Debit Provsion for taxation Rs.1200/-
Debit Income tax refundable Rs. 700/-
Debit Income tax expense (Prior year) Rs.100/-
Credit Advance income tax Rs.2000/-
when the cheque has been received from IT dept
Debit Bank Rs.700/-
Credit income tax refundable Rs.700/-
SMR
