What is provision for tax in balance sheet?
The provision for income taxes on an income statement is the amount of income taxes a company estimates it will pay in a given year.In the Balance sheet of bank it shown under the head other Liabilities and Provission..
What is the journal entry for income tax paid?
When you pay taxes, you need to record the transaction in your books. To show that you paid taxes, use the following debits and credits: Debit the income tax expense account. Credit the cash account.
Is income tax an expense?
Income tax is considered as an expense, for the business or individual, because there is an outflow of cash due to tax payout. Income tax expense is a component that features on the income statement under the heading of ‘other expenses.
Is income tax expense an adjusting entry?
After your accountant computes the income tax liability of the corporation, an adjusting entry should be made in the general journal to reflect the income tax expense for the year.
How do you record a refund in accounting?
When you accept a return from a customer, you record the refund in your sales returns and allowances account and subtract the item’s original cost from your cost of goods sold account. The amount of each refund and cost may differ depending on the particular item.