0
You will need two accounts:
Income tax expenses (an expense account, obviously)
Provision for income tax (a liability account)
You will simply:
debit provision for income tax
credit income tax expenses
When actually paying income tax, you will:
debit cash
credit provision for income tax
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
What is the accounting entry for the Provision of Income Tax?
dr. income tax expense cr. income tax payable
What does provision of income tax mean?
Estimation of the taxes for the current year
What is Provision for audit fees entry?
what is the accounting entry for provision for audit fees
Provision for Income Taxes do you need it to calculate times interest earned?
All interest income for the year is added to all of your other gross worldwide income for the year and reported on your 1040 income tax return for the year.
Double entry book-keeping for a decrease in provision for bad debts?
when there is decrease in provision of doubtful debts the double entry to record it would be ; debit : provision credit: expense /bad debts
What is the difference between Income Tax and Provision of Income Tax?
Provision for income tax refers to the line item in the profit and loss statement. Income tax is a broad term and could mean current taxes (taxes actually payable to Government), Tax expenses/provision for tax- taxes reported in the P&L or deferred taxes (difference between current taxes and tax expense).
What is the accounting entry for the Provision of Income Tax?
dr. income tax expense cr. income tax payable
What does provision of income tax mean?
Estimation of the taxes for the current year
What can you claim for a toddler on your income taxes?
In the US, there is no special tax provision for toddlers. If the toddler is your dependent, you can include him/her as such.
What is Provision for audit fees entry?
what is the accounting entry for provision for audit fees
Provision for Income Taxes do you need it to calculate times interest earned?
All interest income for the year is added to all of your other gross worldwide income for the year and reported on your 1040 income tax return for the year.
Is Provision for income taxes a current asset or liability?
Provisions are defined as liabilities of uncertain timing and amount. 2 types of provisions 1. provision that are in the nature of liabilities ( eg provision for warranty) 2. provisions that are in the nature of asset valuation ( eg provision for doubtful debt)
What taxes are higher corporate or income taxes?
income taxes
Double entry book-keeping for a decrease in provision for bad debts?
when there is decrease in provision of doubtful debts the double entry to record it would be ; debit : provision credit: expense /bad debts
How do you do double entry on stock provision?
To perform double entry on stock provision, you'd record the company's transactions twice. Two of the accounts in the system will have this.
What is the entry of tds provision?
For a provision you initially debit cost and credit provision. When the provision is released you debit your provision and credit cash. The provision should be adjusted to present value on your balance sheet.
What is the difference between income taxes and state taxes?
Income taxes are taxes paid based on the amount of your wages and other forms of income, including but not limited to investment income, pensions, interest and dividend income, business income, rental income, etc. Income taxes are assessed by and paid to the federal government and, depending on where you live, also state and local governments. State taxes can come in many forms, including not only income taxes, but also property taxes, sales taxes, use taxes, excise taxes, business taxes, etc.
