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pol6ca
Lv 4
pol6ca asked in Business & FinanceSmall Business · 1 decade ago

How do you create an income tax liability in a business GL?

Taxes are determined at year end as a percentage of income and you create a liabilty/payable to the government, but where does the other side of the ledger come from, the credit/debit part? What asset would it go against?

1 Answer

Relevance
  • Anonymous
    1 decade ago
    Favorite Answer

    Equity / Retained Earnings.

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