Hi Tut,
Please see the uploaded files in edit form.
I have try to follow previous post in this regards. This happening when I try to record payment of the company tax quarterly and/or annually.
See below:
You should have two accounts.
- Corporate tax (expense)
- Provision for corporate tax (liability)
At the end of financial year, you would make a journal entry to debit expense account and credit liability account. This way corporate tax expense is allocated to the financial year it is incurred regardless when it’s actually paid.
When corporate tax is paid, you would allocate the payment to Provision for corporate tax liability account so the balance (hopefully) comes to zero.