First, make sure the chart of accounts is set up properly.
The debit DR income tax account- Must be Equity
- Must be mapped to EQU.UDE.3
The credit CR account
- Must be Liability
- Must be mapped to LIA.CUR.TAX.INC
Post the journal
30 June 20XX
DR - Income tax - 15,000
CR - Income tax payable - 15,000
Post the rollover journal
1 July 20XX
DR - Retained earnings - 15,000
CR - Income tax - 15,000
