Please experts i need answer for this please

Asha (Querist) 13 October 2012 This query is : Resolved
I know it's an academic query but please i have my exam and i m very confused no one is here to reply this query my brother is out of town and no friends is ready to reply,
It's okey if experts if you wont reply to my query it's okey .. I know some one wil surely help me.
thanks
My query is -
Hey can Any1 help me to pass the journal entry for payment of tax on long term capital gain. Also explain y s dat particular a/c dr or cr.

Follow Query

Report Abuse

prabhakar singh (Expert) 13 October 2012
Dear Asha!
You should have asked it on CAclubindia.They are considered more adept for debit and credits.

Anyway I am trying.

Debit the receiver

and credit what goes out

should be the right answer.

So entry to be passed should read:

Long term Capital gain tax a/c dr.

To cash/cheque a/c.

(Long term Capitalgain tax paid in by cash cheque)