LLP Accounts - help !!! | AccountingWEB

LLP Accounts - help !!!

Hi, first time preparing an LLP set of accounts and having run the disclosure check I seem to be left with one query to resolve. The partnership agreement states that the partners receive a salary of X plus the partnership pays the tax on the salary. I appreciate that the salary is treated as members remuneration charged as an expense but what do I do about the tax element which is paid after the year end. Do I debit the salary expense and credit a tax reserve in the accounts or simply reflect the tax elemant in the profit allocation and debit the salary to drawings when paid. Essentially if I credit a tax reserve I end up with a lower capital account.

Any help would be greatly appreciated.

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How do you know

petersaxton |
petersaxton's picture

Re tax paid

millertime |

But how do you know

petersaxton |
petersaxton's picture

Are you sure that the

Triggle |

There was a similar thread to this a while back

ACDWebb |
ACDWebb's picture