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Provision for tax
Accountancy
In cash flow ,in some cases it is added to net profit ,in some ,not added . Plss tell me wen to add and wen not to ?
Answers (8)
For cash flows from operating activities, Net profit before tax required. So it may be change depends upon the cases In illu-7, there was directly given in question as Profit before tax in pg.no.4.100 But, in Illu-8, only Net profit given in the question so we will added back tax amount to find out Net profit before tax.
Thread Starter
Reetikaa RIn illustration 7 ,not added . In illustration 8 ,added
Sir plss add to this
CA Suraj Lakhotia Admin
https://youtu.be/q6OpWp30lQM
Sir I know how to compute tax paid sir but can't understand y we add provision for tax to net profit in some questions.
CA Suraj Lakhotia Admin
https://youtu.be/q6OpWp30lQM
Provision for tax created in current year is added to net profit before tax in all cases sir ???
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