Newbie various

[Dale Alspach]

The tax you have collected is a liability normally. I do not know anything
about accounting practices in Australia, but here in Oklahoma a business
collects sales tax on behalf of the state and periodically remits it. So as
you collect the tax, it is a deposit (debit) to some bank account and increases
(credit) a tax liability acount. When the tax is remitted to the state
there is a withdrawal (credit) to the bank account and decrease (debit) of
the liability account. Under this accounting model it has nothing to do
with business income or expense. The business acts as an agent of the state
in a similar role to a lender collecting escrow on a home loan to pay real
estate taxes and insurance.

Dale Alspach