Good Day
I would like to know about the journal entry when processing the tax for my company. I understand that I need to DR Tax in the IS and CR the Tax control account - and then when making payment I DR the tax account and CR bank. But when doing this entry, it reduces my net profit in my income statement - I am processing this on Pastel, and created the tax account in the income statement using the 130 - Tax Financial Category in the options. But surely my tax owing is not supposed to reduce my net profit / loss? Or am I being confused. Many thanks, Grace
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