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The company PAID ADVANCE TAX OF 10000 on 15 March
At year end on 31 Dec it made a a provision for tax of Rs 30000
It paid the balance tax on 20000
Pass Entries
View Answer15 March
Advance tax Dr 10000
To Bank 10000
31 March
Tax Expense Dr 30000
To Provision for Tax 30000
30 Sept
Provision for tax 30000
To Bank 20000
To Advance tax 10000
Or
Income tax Dr 20000
To Bank 20000
Provision for tax 30000
To Income tax 20000
To Advance tax 10000
