Journal entries for Interest charged on Payroll tax late payment

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  • Updated 4 weeks ago
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Interest was charged for paying Payroll tax late to NSW State Revenue, where should I put it?
Should I set up an new account for it?
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Melisa

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Posted 4 weeks ago

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Kevin Russell, Accredited Partner

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Why dont you write a cheque for the interest? You dont need journals for this. In fact if its cash you should never be using journals. It will only confuse you
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Melisa

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Thank you. I am new to this.
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Melisa

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If I Credit the bank account, which account should I debit it to?
Dr ?
Cr bank
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Tanya Briggs, Accredited Partner

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write a cheque (or spend money) from the bank account that the interest was paid from and code it to an expense account Interest Paid
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Kevin Russell, Accredited Partner

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Tanya we discussed this