Double-Entry for Corporation tax

Discussion in 'UK Accountancy' started by Robert, Jun 7, 2007.

  1. Robert

    Robert Guest

    Hi,

    I am unsure of what Journal should be carried out at year-end for Corporation
    Tax. I am tempted to treat it like an expense in the Profit and Loss, but this
    is not correct due it not being an expense.

    Any ideas?
     
    Robert, Jun 7, 2007
    #1
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  2. Robert

    Peter Saxton Guest

    It is an expense.
    Dr Corporation tax (P&L a/c)
    Cr Corporation tax creditor (B/S)
     
    Peter Saxton, Jun 7, 2007
    #2
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  3. Robert

    Mike Lewis Guest

    It will feel like an expense when you write the cheque.
     
    Mike Lewis, Jun 8, 2007
    #3
  4. corporate tax is not an expense, it is an appropriation so
    Dr. P&L Appropriation (I&E)
    Cr. Corporate Tax (BS - Liab.)
    Being Corporate Tax Provisional / [Final] Assesment

    if paid
    Dr. Corporate Tax (BS - Liab.)
    Cr. Bank/Cash
    Cheque No. 0000000102023j - Bank payment for Corporate Tax Instalments

    the Balance their after to be treated as an Amount Payable for Balance Sheet
    and Financial Statements expression.

    Enjoy the Day, for more more ..... .

    url:http://myreader.co.uk/msg/12924380.aspx
     
    Matondo Lameck, Aug 19, 2010
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  5. Robert

    sekhamfinancials

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    agreed with Matondo Lameck
     
    sekhamfinancials, Sep 9, 2010
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  6. Robert

    Nemaungwe

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    Corporate tax

    DR Profit & Loss
    CR Income Tax Expense
    followed by
    DR Income Tax Expense
    CR Income Tax Payable
    NB: Income Tax Expense could also include Deferred Taxation element} therefore the above entry would then be as follows:
    DR Income Tax Expense
    CR Income Tax Payable
    CR Deferred Tax


    and the last step is as follows
    DR Income Tax Payable
    CR Bank


    Emmanuel K.L. Nemaungwe
     
    Nemaungwe, Jul 29, 2013
    #6
  7. Robert

    AnthonyG

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    Corporation Tax not Income Tax

    Nemaungwe
    What's Income Tax got to do with it?
     
    AnthonyG, Jan 22, 2014
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  8. Robert

    Tulash

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    Hi Peter,
    I seriously Doubt about corporation tax as an Expense....!! Any eligible expense is deductible from Profit before it calculate the Corporation Tax Liabilities in the end. I have never come cross that Corporation tax was deducted from Net Profit before calculating the CT. Thanks
     
    Tulash, May 19, 2016
    #8
  9. Robert

    Tulash

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    It is well confusing answer over the topic.
     
    Tulash, May 19, 2016
    #9
  10. Robert

    Tulash

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    I really thought that this forum is good place to interact and use as learning Sources. But I am really surprised that few people are replying anything without enough knowledge on the subject. This is so misleading.... Wish people would not just ASSUME for the ANSWERS. Thank you
     
    Tulash, May 19, 2016
    #10
  11. Robert

    Becky Administrator

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    You know you are replying to a 9 year-old archived topic... right?
     
    Becky, May 19, 2016
    #11
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