325 – Taxes Payable – Other Than Payroll, Sales, & Income

Current Liabilities

Accrued Liabilities

Synopsis

Account 325

Debits

Credits

  1. Payments made to taxing agencies applicable to taxes accrued in this account.

  2. Adjustments to reduce the accrual balance to more current estimates, or to actual liability.

 

  1. The monthly accruals for real and/or personal property taxes.

  2. The accrual for state and local taxes for which specific accounts have not been provided.

  3. Adjustments to increase the respective accrual to more current estimates, or to actual liability.

 

Remarks:

Included in this account are such state and local taxes such as mercantile taxes, gross receipts taxes, corporate franchise taxes, business activity taxes, and intangible taxes.

All accrued taxes, licenses, and permits should be scheduled in detail fully describing each tax item, and taxable period covered, on the Prepaid and Accrued Account Schedule.  The balance shown on this schedule should agree with the balance in this account each month-end.

License and title fees should be paid on or before the required due date to avoid penalties.

Real and/or personal taxes become liabilities on dates specified by state or local law.

The exact amount of the liability may not be determinable; therefore, an estimated amount should be recorded.  The estimated liability should be adjusted to the actual amount when it has been determined.

Note: