Taxes death

[Buddha Buck]

I believe it's correct, but only an accountant familiar with the laws of
your jurisdiction can say for sure.


On Tue, Feb 19, 2013 at 8:36 AM, James Gruetzner <adastraarms1 at gmail.com>wrote:

> 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.
>>
>
>