[VIC09]

I need to make a j/entry to accounting system. I got refund from Revenue. For corporate federal taxes. Which accounts I should choose: Bank -DR and Federal Corporation Tax prepaid (the payment for the year was recorded on this account or Federal Corporate Tax payable) Thank you, Vic

[morgaine300]

You need to know where it was originally recorded, and I don't mean whether it was in a payable or not. If it was refunded, it isn't going to be payable anymore unless it applies to some future year instead.

If you accidentally charged it to the expense, it has to come out of there. If you knew you would get this refund and had it in an asset account (like a receivable), then it needs to come out of there.