Tax Flashcards
1
Q
What is the double entry for tax paid?
A
Credit - cash
Debit - tax (P&L)
2
Q
What is the double entry for tax not paid?
A
Credit - payable
Debit - tax (P&L)
3
Q
What is tax liability?
A
A provision as the amount is uncertain
4
Q
What is the double entry for tax liability underestimated (prior year adjustment)?
A
Credit - cash actual amount
Debit - payable
Debit - P&L
5
Q
What is the double entry for tax liability overestimated (prior year adjustment)?
A
Credit - cash
Debit - payable
Credit - P&l
