Question

Prepare Provision for Income Tax Account from the following informations for preparing Cash Flow Statements:
$$\begin{array}{ccc}\text{Particulars}& 31-03-2016& 31-03-2017\\ & \text{Rs.}& \text{Rs.}\\ \text{Provision for Income Tax}& 3,20,000& 4,00,000\end{array}$$

Additional Information:
During the year Income Tax paid was Rs. 2,80,000

Answer 1

Dr . Provision For Income Tax Account Cr.

$$\begin{array}{cccc}\text{Particulars}& \text{Amount}& \text{Particulars}& \text{Amount}\\ \text{Bank A/c (Payment made (Given))}& 2,80,000& \text{Balance b/d (Given)}& 3,20,000\\ \text{Balance c/d (Given)}& \underset{–}{4,00,000}& \text{Statement of P and L (Balancing figure) (Provision made in 2017)}& \underset{–}{3,60,000}\\ & \underset{–}{6,80,000}& & \underset{–}{6,80,000}\end{array}$$