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Post Info TOPIC: Corporation tax payable recording on P&L and B/S
Karolle_


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Corporation tax payable recording on P&L and B/S
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Hi,

I have a question how to record corporation tax paybale on the last accounts?I understand that Corporation Tax will be the liability in the year for which tax has to be paid, so it will go under the Liabilities. What will be it's position in Profit and Loss account?just after profit write less corporation tax and the difference will be net profit?



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km

 
MarkS


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Yeah you got it right.

The double entry to record the CT is

Dr P&L ac £x

Cr BS CT liability £x

The CT on the balance sheet is shown after the net profit before tax and by inference after deducting the CT amount the figure you are left with is net profit after tax.

Regards

Mark



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Mark Stewart CA

http://stewartaccounting.co.uk/

Providing accounting, bookkeeping, payroll and tax services to small and medium sized businesses across Central Scotland and beyond.
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