You need to add an expense transaction for the interest. If the interest is $100, Credit the liability account $100 and debit an expense account such as IRS penalties and interest for $100.
Dale On Sat, Jan 4, 2025, 5:29 PM Louise <lou...@bernevyl.com> wrote: > I'm not an accountant, so be gentle with me! > > I have an account set up for the money I owe the tax man. As I owe it. > I've created it as a liability. > > When I pay it from my chequing account I Withdraw from the chequing > account, and transfer to the liability account. That reduces the total > amount owed, which seems to be correct. > > However, I have to pay interest on the amount I owe, which the tax man > takes from my chequing account. So when I create the same transaction > for the interest, i.e. withdraw from chequing and transfer to tax, the > amount is reduced not increased. > > How do I add interest to the liability account by withdrawing money from > the chequing account? > > -- > If you need end-to-end encryption, I have a security key > > > -- > This email has been checked for viruses by Avast antivirus software. > www.avast.com > _______________________________________________ > gnucash-user mailing list > gnucash-user@gnucash.org > To update your subscription preferences or to unsubscribe: > https://lists.gnucash.org/mailman/listinfo/gnucash-user > ----- > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. > _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
