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Open tuition Notes Chapter 4 Example 1 :-
I want to know that the accounting period of profit and loss statement is from from 1june 2013 till 31March 2014.
But the Tax year ends at 5th April 2014.
Then shouldn’t we adjust everything according to the tax period ?
For example :- Divide the net profit by 12 and multiply it by 10 months to get the adjusted net profit for the months that are coming in tax year.It’s till *31 May 2014. I think you’d have to first determine the tax adjusted trading profit for the given period before (in this case) applying the opening year rules, IF that had been required in the question. And that would have meant assessing profits on actual basis, i.e. from commencement of trade to 05.04.14 for 2013/14. Hope I’m not wrong.
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