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Post tax expense into the previous year by inserting a Manual General Ledger Journal with the full amount to be paid.
- Debit Income Tax Expense with the full amount to be paid
- Credit Income Tax Payable Liability with the full amount to be paid.
- See link on how to insert a manual general ledger journal Entering a New General Journal
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Payment option one, process income tax payments as bank payments:
- Insert a bank payment from the correct bank account, with the correct tender, description and payment reference,date and dissect it against the Income Tax Liability
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- Account
- This will Debit the Liability account and Credit the Bank Account
- See link Entering a Manual Bank Payment
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Payment option two, process income tax payments through suppliersand track through Suppliers Card after the Journal has been entered
- Set up a card called something like ATO
- Insert a Supplier Debit and dissect the debit against the Income tax liaiblity account for the amount to be paid
- By inserting a supplier debit, the general ledger affect will be - Debit the Liability Account and Credit Trade Creditors.
- See link Entering Supplier Debit through Cards
- Then make the payment and allocate the payment against the supplier debit
- Insert onto the Supplier Card of ATO, a Supplier Payment from the right bank account, tender,date etc for the amount equal to the supplier debit and allocate the payment against the supplier debit
- By inserting a supplier payment this will Debit Trade Creditors and Credit the Bank
- See link Entering a new supplier payment through cards manually
As you make your weekly or mothly repayments for your Company Income Tax, insert a supplier debit and supplier payment.
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