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Shouldn't the provision for tax should be calculated this way as it is mentioned provision should be provided 35% of the profits.

Himanshu Somani

CA Final

★ 97K+

10-Nov-21 10:52

411

Answers (2)

Best Answer

lavanya k

No, provision for tax is a balance sheet item, not an expense, so u should not include it in expense the way u did by adding 0.35x as expense, book solution is correct

Ok Merci

Thread Starter

Himanshu Somani

CA Final

★ 97K+

10-Nov-21 11:28

No, provision for tax is a balance sheet item, not an expense, so u should not include it in expense the way u did by adding 0.35x as expense, book solution is correct

lavanya k

CA Final

★ 2K+

10-Nov-21 11:06

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