Im in a situation where in 2017 a client formed a company. He pays his 2016 income tax in 2017 fiscal year. Since 2016 his company was not formed do i apply the payment to a PD account ? what is the proper way to enter this? thanks
ADMIN RESPONSE
Feb 10, 2025
With a corporation, anything to do with Income tax should be posted to a liability account called Corporate Income Tax Payable. from there, the accountant will make the appropriate adjustments at year-end.
