An Accounting Question

[Michael DeBusk]

On 08/11/2010 08:18 PM, LemanRus wrote:

> I created an account for
> 
> Company Tax
> 
> Liabilities / Current Liabilities / Company Tax
> 
> and a Checking Account
> 
> Assets / Current Assets / Checking Account

I'm assuming you're bookkeeping on an accrual basis.

You should also have Expenses / Company Tax.

When you get your bill, you debit Expenses / Company Tax and Credit
Liabilities / Current Liabilities / Company Tax.

When you pay your bill, you debit Liabilities / Current Liabilities /
Company Tax and credit Assets / Current Assets / Checking Account.

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