Forum Discussion
Hi CloverQ,
Thanks for your reply. I spoke with my accountant today and he confirmed he forgot to record it. I've instead now created a general journal entry for 1/7 to debit Retained Earnings and credit Income Tax Payable, which I suppose has the same effect on the company's current position.
Out of curiousity, if I had recorded the liability against last FY (post rollover) as you said is possible, would the Retained Earnings have been re-calculated accordingly?
Cheers.
Hi jonesty
Apologies for the delayed response.
The Retained Earnings is affected by the Net earning/loss of the year, so if you record a journal posting to any of the Profit & Loss report accounts, the retained earnings will change then.
Again, we do recommend confirming with your accountant before recording any adjustment journal entries.