From the following information calculate the Income-tax Paid during the year.
Provision for tax on 31 March 2020 - ₹30,000
Provision for tax on 31 March 2021- ₹20,000
Provision for tax as per Statement of Profit and Loss - ₹1,00,000
Answer & explanation
Correct answer: option 1
The correct answer is option 1- ₹1,10,000.
Opening balance of Provision for tax - 30,000
Add : Provision as per P&L - 1,00,000
Less : Closing Balance of Provision for tax-20,000
Tax Paid - 1,10,000
PROVISION FRO TAX ACCOUNT
| PARTICULARS | AMOUNT (₹) | PARTICULARS | AMOUNT (₹) |
| To Bank A/c (Payment of tax) |
1,10,000 | By Balance b/d | 30,000 |
| To Balance c/d | 20,000 | By Statement of profit & loss A/c | 1,00,000 |
| 1,30,000 | 1,30,000 |