Question

Prepare ‘Provision for Income Tax Account’ from the following information for preparing Cash Flow Statement:

EQUITY AND LIABILITY SIDE OF BALANCE SHEET
	31-03-2021 (₹)	31-03-2022 (₹)
Provision for Income Tax	2,20,000	1,90,000

Additional Information:

    During the year, Income Tax paid was ₹ 2,30,000.

Answer 1

Dr.	Provision for Income Tax Account				Cr.
Date	Particulars	Amount (₹)	Date	Particulars	Amount (₹)
2021-22			2021-22
	To Bank A/c (Tax Paid)	2,30,000		By Balance b/d	2,20,000
	To Balance c/d	1,90,000		By P&L A/c (Bal. Fig.)	2,00,000
	Total	4,20,000		Total	4,20,000