Hello,
Each quarter we are sent an amount that needs to be paid to both the Federal and Provincial Government for provisional taxes. I'm not sure how i should be entering this in sage 50 and which accounts to use.
Thank you
Nicole
Hi Nicole:
Debit Provision for Corporate Taxes and Credit Bank. You may have to setup an expense account if you do not already have it in your chart of accounts. You may also have to setup a Corporate Taxes Payable account.
Hope this helps!
Thank you, I already has the corporate taxes payable account setup but when i entered the amount it showed as a negative so i wasn't sure if i had done it correctly.
Hi Nicole:
If your accountant has setup a provision for the current year corporate taxes in your general ledger, then it is a matter of posting your payments to the Corporate Taxes Payable account. If this hasn't been done then I would post it to the Provision for Corporate Taxes Expense account.
Hope this helps!
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