[GNC] Contingency Funds was: Re: How to record Personal income tax ?

[David Cousens]

Hi Long 

Yes, the transaction when you pay tax is as follows

                                                         Dr               Cr
Asset:Bank:Checking                                         1000
Liability:Tax                                       1000

to pay the tax and

Liability:Tax                                         200
Expense:Tax                                                        200

to correct the overestimate of your tax as you indicated. If you had also
createda Asset:ban:Provision for Tax account the payment would have come out
of that rather than the checking account and the excess funds in that
account would be reurned to your main checking account as well.

David



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David Cousens
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