Business Q&A

Question:
I just want to know which account to debit and credit for the income tax due and payable.

Answer:
Income tax Payable is a liability… you increase a liability with a credit. The opposite entry is the income tax expense. You increase expenses with debits.

Income Tax Expense
Income Tax Payable

If you're talking about income tax due meaning it's a receivable.. its about the exact opposite with another account name.

Income tax Receivable
Retained earnings… (you can't really credit expenses…)

Resource related business question and answer:

Closing Trial Balance

... balance has been prepared after posting all of the journal entries ... 001-2130: State Income Tax Withholdings Payable 500: 001-2310. Due to Special Revenue Funds 1,000

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Task 5.3 - Recording Income Tax Instalments (Remove for 10.1)

... to Creating Entries, you should check the balance in the 850/001 Income Tax Payable account to ensure that this amount only includes previous years liabilities or refunds due.

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