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Level 1

IN: journal entries for tax adjustment

please give the examples of the journal entries to be passed while recording tax payment

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Level 5

IN: journal entries for tax adjustment

Hi, Manju

Corporation tax payment

01. For tax estimates

Debit    Corporation income tax ( expenses type P/L )

Credit   Corporation income tax liability ( liability type)

02. For tax payments use the check screen and select Corporation income tax liability under the Category.

03. Over/Underestimates adjust as in 01. journal for underestimates, if overestimated enter it as negative amount.

 

Comment back for further clarifications