[aaron237]

Hi all,

All right I'm totally new to running business and doing my own bookkeeping so bare with me. I've looked at a few tutorials on double entry bookkeeping. Most of them are kind enough to simplify it to the point that even I can understand it. Cool.

But wait a minute. They simplify it so much that it misses some things. Like Tax. I am struggling to figure out where tax goes in a double entry style bookkeeping sheet.

Let's say I pay $100 for office supplies and the tax is 7% PST and 5% GST. Ok so do I just write down $112 or do I write $100 and then a separate $7 + $5 somewhere else?

Thanks everyone!

[paraclete]

It is easier and simpler to record the transaction in gross amounts but you can have an expense account called tax if you want to. If you do this you will need to separate the tax component from your sales also