Taxes death

[James Gruetzner]

I think I understand.  So, when I make a $10 sale, for example, with a 7%
sales tax,
 - Income:  Sales:   increase $10
 - Liability:State Sales tax:  Increase $0.70
 - Assets:Current:Undeposited:  Increase $1.70

Suppose ten identical sales are all I do for the tax period, so I owe $7.00
in taxes to the state.

  - Assets:Checking:  decrease $7.00 (check payed to state)
  - Liability:State Sales Tax:  decrease $7.00

Expenses:Taxes:Sales tax never gets touched.

Is that correct?

Thanks!
   James


On Mon, Feb 18, 2013 at 10:05 PM, Buddha Buck <blaisepascal at gmail.com>wrote:

>
> On Mon, Feb 18, 2013 at 11:25 PM, James Gruetzner <adastraarms1 at gmail.com>wrote:
>
>> The problem as I see it is that the Expenses:Sales tax  account does not
>> get affected -- but it should.
>>
>
> I think you are doing it right, and the Expenses:Sales tax account should
> NOT get affected.  The sales tax you collect from your customers is not
> yours, you are just holding it until you can pass it on to the State.
>
> In contrast, the sales tax you pay on a good or service you purchase is an
> expense, and could/should be charged to Expenses:Sales Tax.
>