325 Other Taxes Payable

Liabilities

Accrued

Synopsis

Account 325 is established to record the amount of Other Taxes payable or accrued.

Debits

Credits

  1. Payments made

  1. Provision for real estate taxes payable

  2. Provision for personal property taxes payable

  3. Provision for gross receipts taxes payable

  4. Provision for state and local taxes payable, not based on income

 

Example 1

Record the accrual of the real estate taxes for the month in the amount of $3,813.

Journal: Standard Entries Journal

Entry:

 

Debit

Credit

Account 084-01

Taxes – Real Estate – New Vehicle Department

$1,335

 

Account 084-02

Taxes – Real Estate – Used Vehicle Department

$763

 

Account 084-03

Taxes – Real Estate – Lease & Rental Department

$75

 

Account 084-05

Taxes – Real Estate – Mechanical Department

$763

 

Account 084-06

Taxes – Real Estate – Body Shop Department

$267

 

Account 084-07

Taxes – Real Estate – Parts & Accessories Department

$419

 

Account 084-09

Taxes – Real Estate – General & Administrative

$191

 

Account 325

Other Taxes Payable

 

$3,813

Example 2

Record the payment of the real estate taxes in the amount of $45,750.

Journal: Cash Disbursements

Entry:

 

Debit

Credit

Account 325

Other Taxes Payable

$45,750

 

Account 202

Cash in Bank

 

$45,750

Comments

A credit balance represents unpaid taxes other than payroll, sales, use and income taxes.