Hi
We have received a income tax refund from SARS.
What are the journal entries to capture the refund?
Hi
We have received a income tax refund from SARS.
What are the journal entries to capture the refund?
Your original recording of the net of the tax calculation entry would have been :-
Dr - SARS
Cr - Income Tax account.
Now you have received the cash so its:-
Dr - Cash
Cr - SARS
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Well our accountant didn't give me any information about our IT and I have to know do journals to capture it
The income tax account is that the "expense acc" Or "current Liability" account I must CR
SARS account I am assuming you mean the Vat Control Acc 9500/000 ???
Income Tax is different to VAT. Your first post mentions income tax refund - this is different to a VAT refund. If it is a VAT refund then it is the VAT Control Acc.
I would suggest you ask your accountant for the entries and that he help you through what should be done.
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