I need to record an estimated quarterly income tax payment and am not sure of what the entry would be. Any help would be greatly appreciated.

Dr??
Cr Cash for the payment

Thanks

Tax charge through the P&L statement would make sneeze to me.

Quote:

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Originally Posted by bustergr

I need to record an estimated quarterly income tax payment and am not sure of what the entry would be. Any help would be greatly appreciated.

Dr ????
Cr Cash for the payment

Thanks

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TAX A/C

Quote:

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Originally Posted by bustergr

I need to record an estimated quarterly income tax payment and am not sure of what the entry would be. Any help would be greatly appreciated.

Dr ????
Cr Cash for the payment

Thanks

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You have part of the calculation correct. First, This is an estimate, so cash is not being affected here. Your journal for the estimate is as follows:

Dr Tax Expense (Expenses account)

Cr Taxes Payable (Liability account)

At the point the taxes are actually paid, the entry would be as follows:

Dr Taxes Payable (Liability account)

Cr Cash (Asset account)


Hope this helps

Capital a/c Dr.
To Cash/Bank a/c

I have a question about deferred tax asset of RM300000 in respect of a deductible difference of RM2 million, but the company had only recognized RM100000 as an asset in the balance sheet. During the year ended 31 December 2010, the company pioneered a new product process and expected to generate a prosperous business and sustained profit from 2011.