Tax Refund on Chart of Accounts

Tax Refund on Chart of Accounts

Tax Refund on Chart of Accounts

How would you classify a tax refund check on your chart of accounts?

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Jun 05, 2018
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Tax Refund on COA
by: Stephanie

Thank you for your question about how to classify a tax refund check on your chart of accounts.

As a sole proprietor, you should classify your tax refund as an Owner's Contribution which would show on your balance sheet.

An example would be:

DEBIT Checking Account (Asset)
CREDIT Owner's Contribution (Equity)

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