Hi, we were due a refund from HMRC in respect of Corporation tax so posted the following journal in anticipation:
DR CL/Corporation tax
R P&L/Corporation tax charge
We have now received the refund plus interest. Do i post the total amount incl ineterest to clear CL/Corporation tax or do i split it? If so, which code shall i use for interest? should this be a BS or P&L account?