How to record taxes as Journal entries
Debit Tax Expense
Credit Taxes payable/Cash/Bank account
however, it appears that the person is saying to credit all the above accounts.
If taxes are paid and you wish to record the journal entry you will:
Debit Tax Expense
Credit Cash (bank account is included in your cash account)
If taxes are going to be paid at a future date you will:
Debit Tax Expense
Credit Taxes Payable
After you pay the taxes if recorded first as a payable you will then enter:
Debit Taxes Payable
Credit Cash
Bookmark this post: | 
|
Save And Share :
0 comments:
Post a Comment