1 Topic by realjedd (edited by realjedd 12/23/2017 11:18:07 am)

  • From: Saudi Arabia, Jeddah
  • Registered: 12/12/2017
  • Posts: 43

Topic: The journal must balance (debits equal to credits)

Hi Joe, apmuthu and all

i got this message when  i try to do JE entry for tax
The journal must balance (debits equal to credits) before it can be processed.
i have to pay tax 1350 I saw it in Tax report.

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,089

Re: The journal must balance (debits equal to credits)

Provide screenshot of what you did while entering the JE.

apmuthu's Website

3 Reply by realjedd (edited by realjedd 12/23/2017 12:31:12 pm)

  • From: Saudi Arabia, Jeddah
  • Registered: 12/12/2017
  • Posts: 43

Re: The journal must balance (debits equal to credits)

JE Entry produces

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4 Reply by poncho1234 (edited by poncho1234 12/23/2017 01:08:05 pm)

  • From: Colombia
  • Registered: 12/29/2014
  • Posts: 627

Re: The journal must balance (debits equal to credits)

What you remove from one account you have to add it to another account, (and vice versa) thats how double entry accounting works isn't it.

You must have a debit and a credit for each journal entry

The FrontAccounting Wiki(Manual, examples, tips, setup info, links to accounting sites, etc) https://frontaccounting.com/fawiki/
  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,089

Re: The journal must balance (debits equal to credits)

Yes. Enter a credit and a debit entry atleast. You have entered only a debit to Account 2160. Where do you want to credit it? Possibly credit to some Tax Expenses / Tax Paid Account.

apmuthu's Website

  • From: Saudi Arabia, Jeddah
  • Registered: 12/12/2017
  • Posts: 43

Re: The journal must balance (debits equal to credits)

Thanks apmuthu
now i did as you told me. credit from sales tax 2150 and debit to accrued use tax payable 2160.Now how i make the tax report become 0 to calculate for new month?

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,089

Re: The journal must balance (debits equal to credits)

Entry would be CR Bank
and DR Net Tax Payable

See this post.
Also read the wiki.

apmuthu's Website

8 Reply by realjedd (edited by realjedd 12/23/2017 08:32:52 pm)

  • From: Saudi Arabia, Jeddah
  • Registered: 12/12/2017
  • Posts: 43

Re: The journal must balance (debits equal to credits)

i try to do the same but no way the tax report still there i need to pay 1375

can you please explain to me this sentence on Braket
*( you empty the balances from sales/purchase tax and move this balance into the Accrued Account for Tax collection.)

i created Accrued Account aready
and i went to JE so when i put debit 1375 from sales Tax and Credit to Accrued Account 1375 is this mean make it empty!
please clarify it to me.

pounch1234 sorry i did not see your comment thanks to you

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,089

Re: The journal must balance (debits equal to credits)

1. Your first JE should be to place the tax from the sales account (dr) to the credit of the Tax Accrued Account (if tax is included). This removes the tax out of the sales revenue.
2. When the tax period finishes, debit the Tax Accrued Account and credit the actual Tax (Payable) Account. This empties the Tax Accrued Account.
3. When the tax payment is effected, debit the Tax (Payable) Account and credit the Bank whose cheque you are paying with. This empties the Tax (Payable) Account.

Read the section "Using the Tax System" in the Tax System Configuration page in the wiki for when each JE gets passed or should be entered..

apmuthu's Website