Tax Payable account slightly out due to whole dollars submitted to ATO. How to adjust

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  • Updated 1 year ago
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How do I write off the difference in my Tax Payable account due to the fact that we only deal in whole dollars to ATO. Have always been slightly out but would like to get it to match. What would the general journal entry be.
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Michelle Munchow

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Posted 1 year ago

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Charles van Rotterdam

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Rounding expense the difference
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Glenda Veale

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That's what I do also.  Created an expense account called Rounding and then the accountant deals with it at tax time.
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Charles van Rotterdam

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It would be lucky to be a couple of dollars; not material