Corporation Tax on Sage 40

Can anyone help? - I'm doing end of year journals - 2015-2016 tax was £5,000.

31/03/2016 _ I posted
CR Corporation tax BS 5,000
DR Corporation tax P&L 5,000

When I paid HMRC in Dec 2016 I posted:-
Bank payment from account - £5,000

This removes liability on BS code, but there is still a DR for 5,000 on P&L CT code.
How do I get rid of this?
Should both BS & P&L codes for corporation tax be at zero before I add 2016-2017 journals?
Figures are correct when I run P&L, but not when I run BS, after I have added 16-17 tax journals


  • Neillaw
    Neillaw MAAT, AAT Licensed Accountant Posts: 301 Dedicated contributor 🌟 🐵 🌟
    The CT liability in the P&L should have been cleared automatically when you did the year end, the balance sheet should be cleared with the payment in Dec 16.
    You may want to check that your P&L account figure agrees to the stat accounts.
  • EmmaJB
    EmmaJB Registered Posts: 2
    Thanks very much Neillaw - you explained very clearly & quickly that Sage will do that at year end ! I understood they needed to balance, but hadn't realised that would happen as art of Year end - Thanks ! really appreciate your help!
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