corporation tax
System
Posts: 100,534 🤖 Admin 🤖
Is anyone know the coropration tax paid will show up in P&L or B&L? I don't know what kind of expenditure belong to for this amount. If anyone can help, many thanks to advance!<BR><BR>Linda
0
Comments
-
corporation tax
Tax paid will be shown in p/l as an expense.<BR>hope this helps<BR><BR>Arjun0 -
corporation tax
Arjun,<BR>Thank you very much for your help!<BR>But I just wondery it is capital expenditure, it may goes to B&L?<BR><BR>Regards!<BR><BR>Linda0 -
corporation tax
I think you'll find that Corporation tax should appear in both. A debit as an expense in the p&l for the year, and then a credit on the balance sheet as a liability at the year end. <BR><BR>When the tax is paid presumable in the next year you will net the payment off against the balance sheet entry (CT paid), thus debit the b/s with CT paid and credit paid (Bank)<BR><BR>Does this answer your question?<BR><BR>Regards0 -
corporation tax
Hi,<BR>Good point! I get it. <BR>Thank you very much!<BR><BR>Linda0 -
corporation tax
Think of CT as a Balance sheet item. In your T a/c put the brought forward figure, the carry forward, as calculated i.e. current charge plus any other amounts owing, cash paid etc., the balancing figure is then taken to the P/L account. Ignore over/under accrual unless it is needed for an explanation of the tax charge in the notes (it will drop out automatically)0 -
corporation tax
Hi Bryan,<BR>Thanks for detail! It is very help.<BR><BR><BR>Best Regards!<BR>Linda0