Hi,
I do the books for my husband on Pastel Accounting - he is a sole proprietor and pays provisional tax twice a year. These payments I capture to the Vat/Tax Provision Account.
What journal entry would I post to clear the Vat/Tax Provision Account balance for the new financial year?
Credit Vat/Tax Provision Account (B/S)
Debit Normal Taxation (I/S)
Would this be correct?
Thanking you in advance
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