Tax expenses ( tax saving) is the aggregate of current tax and deferred tax charged or credited to the statement of profit and loss for the period. Current tax is the amount of income tax determined to be payable (recoverable) in respect of the taxable income ( tax loss) for a period. If there are differences between the time when certain revenues and expenses are reported on the income tax returns versus when they are reported on the financial statements, the amount of the deferred income tax will likely be reported on the balance sheet as a noncurrent liability as Deferred income taxes.
Foot the general ledger accounts to arrive at the final , adjusted balance for each. Make the following adjusting entry to reflect the income tax expense for the . Some important additional information along with adjustment entries in final accounts are given. This accounting result may contain various sources of income such as income. These non- trading items may be taxed elsewhere in the final tax computation, . From trial balance, expenses and income accounts are transferred to trading account and profit and loss account. Outstanding Rent and Taxes Rs.
Workflow of Account Closing and Final Return. Determination of taxable income and corporation tax. Adjustment of final tax return .
