"Double Dating" transactions?

[Bill Wisse]

On Wednesday 01 September 2004 06:44, David Harrison wrote:

> >  Thomas John Vitolo wrote:
> > Good sirs and madams:
> >  
> > >  Is it possible to "double date" a transaction?
> > >
> > > Not that I know of.
> > > I have found that when I feel the need to  "double date" a transaction,
> > > what I really want to do is do two transactions.  That is take that
> > > money out of one account and put it in another account on the first
> > > date, and then take it out of that account and put it into a third on
> > > the second date.
> > >
> > > As an example, you may want to take money out of income and put it into
> > > a taxes paid account on one date (to get the tax paid in the right
> > > year) and then when you get that rebate, it would come come
> >
> >  All in all it is an interesting question and we really haven't seen any
> > straight forward solution.
> > Are there no accountants on this list to give us an answer? :-)
>
> Hopefully, I can provide a straight forward answer.  You are absolutely
> right that what you want to do is make (at least) two separate entries.
> If I remember the original question, it was in regards to income taxes
> payable. Here are some assumptions that I will make in order to
> illustrate how to deal with it:
>
> 1. Year end is December 31, 2003
> 2. Instalments were paid during the year.  For simplicity, I'll assume
> one instalment on June 30, 2003 of $1,000.00
> 3. Taxes payable for the year were only $900.00, resulting in a refund
> of $100.00
> 4. Refund was received May 15, 2004

Thanks for that.

In my case it is withholding tax.
At the end of the month I receive and bank my cheque as follows: (using your 
$1000.00 example):
Bank                                       $900.00  (D)
Expenses: Withholding tax     $100.00  (D)
Accounts Receivable                                      $1000.00  (C)

This goes on for 12 months, I put in my tax return, I have to pay or get some 
back.


> Here are the entries that I would make:
>
> June 30, 2003
> Income taxes payable       $ 1,000.00 (debit)
>    Bank                                  $1,000.00 (credit)
>
> December 31, 2003
> Income tax expense         $   900.00 (debit)
>    Income tax payable                    $   900.00 (credit)
>
> May 15, 2004
> Bank                       $   100.00 (debit)
>    Income tax payable                    $   100.00 (credit)

I think this last one is what the OP meant.
It shows up in the current financial year and not in the year it applies to.


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Greetings from
/bill at 169 west , 19 south.  
Disclaimer: Any errors in spelling, tact, or fact are
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