why is my corporation payments coming under currents assets as this is showing a credit balance as an asset but its a liability

As I understand it (I’m a partnership rather than limited so don’t have corporation tax in my books), you would typically want to show corporation tax as a P&L expense for the year whose profits it relates to, but you only actually pay it over to HMRC the following year. So once you know how much c…

Current assets

Accounting

ian_roberts 27 January 2019 17:52 2

Credit is a liability, debit would be an asset. If you’ve tagged the payment (from your bank account to HMRC) then yes, this would show as an asset (debit), you need to balance it with a journal that credits the balance sheet code and debits P&L.