Name :: KUMAR
Your Country :: india
Question Title: :: TAX
Explain your question in detail ::
Sir pls explain me advance tax payment entry and current assessment year entry of tax?
Category :: Accounting
Answer ::
Any type of payment, Bank account will credit and because advance tax is our asset before actual due date of payment of tax. So, Advance tax account will debit.
Advance Tax account Debit 10,000
Bank Account Credit 10,000
On the due date of payment of income tax, we will deduct advance tax from total tax liability. We also record the adjustment.
Income tax account Debit 10,000
Advance Tax Account Credit 10,000
If income tax is 1,00,000, then, we will deduct advance tax from this and rest, we will deposit in govt. account.
Income Tax Account Debit 90,000
Bank Account Credit 90,000
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