Need an account to post your tax refund to?
Do you have an account in your Chart of Accounts called Corporate Income Tax Payable, probably in the Liabilities section? If you open the sample company you can use account 21600 for Corporate Taxes payable as an example for what to create in your live company database.
Your accountant should have given you a "year end adjusting entry" with an amount to be posted to Corporate Taxes Payable.
Once you receive your income tax refund, you would book the following entry to clear your payable account:
- Dr. (increase) Cash in Bank ( a current asset on your balance sheet)
- Cr. (increase) Corporate Income Tax Payable (current liability on your balance sheet)
- Cr. (increase) Interest Income (income account on your income statement)
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