What is the relative account of Expenses:Tax?

[Wei-Wei Guo]

Dear all,

I find it's kind of difficult to set a opposite account for Expenses:Tax. For example,

2009/05/19 ZUCC
Assets:Saving:CCB $2431.10
Incomes:ZUCC:Salary

I need to pay tax for the salary. But I don't know where to put it since Assets and
Incomes accounts are all fixed. So I did this:

2009/05/19 [GOV]
Equity:Tax 240.00
Liabilities:Tax

I found it's weird to put things like this since my Equity would be reduced every time
when I had a income.

And I put brackets around GOV for I thought it's not a real transaction. Is it right?

Best wishes,
Wei-Wei

[Alan Bram]

As an example, imagine your salary were $60,000.00 per year, and you
were paid once per month. Each month you earn $5,000.00, but you don't
get to keep all of that money; you have to pay some tax. Let's pretend
the tax is $500.00. The amount you get to keep is only $4,500.00.

Your ledger entry would look something like this:

2009/05/31 ZUCC
Income:ZUCC:Salary $-5,000.00
Expenses:Taxes:Income Tax $500.00
Assets:Saving:CCB $4,500.00