Tax Deducted (Withholding Tax)

AntCellular

Hello @Alexia,

I am required to deduct 7.5% from payments I make to my suppliers.

For example, Auctus LTD provides me a services worth GHS100.00. I create a bill of GHS100.00 and make a payment of GHS92.50 deducting 7.5%.

I then make a payment of 7.5% to a Liability Account I created as 'WHT Payable' to reflect the amount due to the IRS.

Unfortunately I am unable to record a transaction between the WHT Payable and Asset/Bank when the payment to IRS is made.

AntCellular

Figured it out. All I have to do was to make a Journal Entry between WHT Payable and the Bank

Alexia

Happy to hear that, @AntCellular!