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Catherine6's avatar
Catherine6
User
2 years ago

Year end shareholder salary allocation

Hi, 

 

In AccountRight I couldn't find a suitable account to record a journal for shareholder salary allocation. 

 

For example, the company has made a profit of $50,000 in year 2022, the sole shareholder didn't have PAYE salary during the year. The company desided to allocate $48,000 profit under the shareholder's salary to make the income tax in a effective way. What would the journal entry be please?

 

Thanks, Catherine

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  • Tracey_H's avatar
    Tracey_H
    Former Staff
    2 years ago

    Hi Catherine6 

     

    Thanks for your post. As we're not accountants we're not permitted to advise on how this should be recorded. You would need to speak to your accountant about the applicable journal to ensure this is reported correctly.

     

    Don't hesitate to post again if you need help in the future.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.