You first have to adjust the amount of the Liability and the Expense :Tax accounts so their balances are each 10000. To do this you credit the Expense:tax and debit the Liability:Tax account each by 2000. After this the liability and Expense accounts match what you will actually have to pay.
then you make the payment and transfer the money or write a check to the governement Asset:Bank:Checking is credited by 10000 and the Liability:Tax is debited by 10000 so the balance of Liability:Tax after the transaction to pay the tax is 0 - having paid the tax you no longer have a liability but the balance of the Expense:Tax account is still 10000 the amount of tax you have now actually paid. so no the P&L report at the end of the year for the year should show an Expense:Tax of 10000. If you are debiting it at $1000 per month for 12 months its balance will be 12000 and if you then credit it for the $2000 of tax you don't have to pay, the balance in the account will be 10000 not 2000 after that transaction. For an expense account a debit increases the balance and a credit decreases the balance. While I am happy to help, the function of the User group is not to teach people accounting but how to do their accounting using GnuCash. You may find working through the following website useful https://www.accountingcoach.com/ for learning basic accounting skills. David ----- David Cousens -- Sent from: http://gnucash.1415818.n4.nabble.com/GnuCash-User-f1415819.html _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
