G
Greg Maxey
This is probably more of a question for an accountant than it is a question
about MS Accounting Software, but I thought I would ask anyway.
Last year was my first year in business for myself. I kept meticulous
records of travel and meal expenses that occurred in the course of the year
and created an expense account in MS Accounting to track these expenses. My
bookkeeper just finished my business tax return and I learned that only 50%
of these expenses are deductible as a business expense.
My question is what do I do to reconcile my travel expenses (meals) expense
account? Do I do a journal entry to take exactly half out of that account?
Where do I put it? I certainly no longer have the physical cash to put back
into ready cash or some other account. I assume that it would be posted in
some sort of owner equity account as profit, but I am just not sure.
Thanks.
about MS Accounting Software, but I thought I would ask anyway.
Last year was my first year in business for myself. I kept meticulous
records of travel and meal expenses that occurred in the course of the year
and created an expense account in MS Accounting to track these expenses. My
bookkeeper just finished my business tax return and I learned that only 50%
of these expenses are deductible as a business expense.
My question is what do I do to reconcile my travel expenses (meals) expense
account? Do I do a journal entry to take exactly half out of that account?
Where do I put it? I certainly no longer have the physical cash to put back
into ready cash or some other account. I assume that it would be posted in
some sort of owner equity account as profit, but I am just not sure.
Thanks.