I have calculated the corporation tax liability of a small company. I then make an entry (using Sage Line 50):
debit 9000 corporation tax expense in P&L
credit 2320 corporation tax laibility in BS
However, when I now look at the P&L, I get a profit figure distorted by the above P&L entry, yet the BS seems correct except for the P&L figure again.
Do I need to adjust the chart of accounts so that 9000 is reported after the profit figure?
I'd be grateful for any help. I'm sure it's a simple one, but my first time.