"Double Dating" transactions?

[Bill Wisse]

On Thursday 02 September 2004 05:36, David Harrison wrote:

> To be honest, I wasn't trying to get into an arguement about this, my goal
> was to help. This is a very difficult subject, with many different possible
> scenarios. 

Thank you for helping David and no ,we are not getting in an argument. :-)


As I said before, it is an interesting question. :-)

Let's look at it again and break it down.
At the end of the month I send an invoice and receive a cheque.
Because I'm selfemployed the deducted tax is called "withholding tax". Every 
private contractor here, who does some work for the government, is subjected 
to that. (BTW we only pay tax here, no soc secr or what ever.)

Booking:
Bank                                       $900.00  (D)
Expenses: Withholding tax     $100.00  (D)
Accounts Receivable                                      $1000.00  (C)

I believe we can not disagree on that.

Now assume I do this for 5 months and then for any reason I stop my business.
(sick , dead :-), going overseas, what ever.

I put in a tax return and two weeks later ( believe me that is possible here) 
I receive a refund on paid withholding tax.

Booking:
Bank                               $100.00 (D)
Expenses :Witholding tax               100.00 (C)

I think this is correct as well.
My " tax withholding account" shows then the right amount I owed and paid.
This is all in the same financial year and we would not have a problem to 
accept this.

The question is " how do you account for this if the money comes in", in a 
different financial year.
There MUST be an accounting way for doing is.
IAW how do you handle bookings etc which really have an effect on different 
financial years?
It is such a long time ago I did accounting courses and I have no books here 
anymore to find out.
But I remember there was an account you could use for that.


-- 
Remember:"Love is Hate. War is Peace. Windows is Stable."
-- Anonymous

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



-- 
Remember:"Love is Hate. War is Peace. Windows is Stable."
-- Anonymous

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