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Dear Student,
Here is your answer,
WORKING NOTE OF PROVISION IS MENTIONED IN THE BALANCE SHEET.
Old provision is deducted from new one in the debit side of the P & L account.
INCOME TAX IS NOT AN EXPENSE OF BUSINESS, ITS PERSONAL EXPENSE, THEREFORE DEDUCTED OUT OF CAPITAL
Alter way: You can also deduct discount from provision.
Regards.
Here is your answer,
WORKING NOTE OF PROVISION IS MENTIONED IN THE BALANCE SHEET.
Old provision is deducted from new one in the debit side of the P & L account.
INCOME TAX IS NOT AN EXPENSE OF BUSINESS, ITS PERSONAL EXPENSE, THEREFORE DEDUCTED OUT OF CAPITAL
Alter way: You can also deduct discount from provision.
Regards.
