Recording company income tax liability
Hi, my accountant recently completed my company tax return and advised me it was now safe to roll over the financial year, which I've done. However, I can see that the tax liability hasn't been recor...
Forum Discussion
Hi CloverQ,
Thanks for your reply. I spoke with my accountant today and he confirmed he forgot to record it. I've instead now created a general journal entry for 1/7 to debit Retained Earnings and credit Income Tax Payable, which I suppose has the same effect on the company's current position.
Out of curiousity, if I had recorded the liability against last FY (post rollover) as you said is possible, would the Retained Earnings have been re-calculated accordingly?
Cheers.
Hi jonesty
Apologies for the delayed response.
The Retained Earnings is affected by the Net earning/loss of the year, so if you record a journal posting to any of the Profit & Loss report accounts, the retained earnings will change then.
Again, we do recommend confirming with your accountant before recording any adjustment journal entries.
