Hi @LesterDrake
I’m not an accountant and can offer general advice. However, if you’re uncertain about things like this, it may be best to contact your accountant.
@Joe gives a good example on how Corporation Tax should be recorded in his post here.
When what you owe is confirmed by HMRC (the figure in QuickFile is only an estimate), you can create a journal dated for the last day in your tax year. Let’s say for arguments sake our tax year ended on the 31/05/2016, and we have a corp tax bill of £1,000.00. I would create the following journal:
This then creates 2 entries - one for your balance sheet:
And one for your P&L:
When it comes to paying the corporation tax, you would simply tag the entry as corporation tax (Click ‘Tag Me!’, then “Tax Payment to HMRC”. Select ‘Corporation Tax’, and it’ll sort itself out. It will no longer appear on your balance sheet as a liability as it’s been paid.
I hope that helps.
Note - I’ve removed your duplicate posts (there’s an ‘edit’ button under each post, and you can post multiple images to each post too), and also your image to protect your account details.