I'm assuming sales taxes are put into the Sales Tax payable account when an item is sold. At the end of the month, lets say for example that I owe $500 in sales taxes. Added to this is the tax on items taken from the business for personal use and items consumed by the business, as well as personal items purchased out of state. The state requires it all to be put on the business sales tax return with a check from the business. The total check will be for $600 but only $500 will be a debit to Sales Tax Payable. QB insists on paying the sales tax from the "Pay Sales Tax" on the menu but it won't let the transaction be split. I did the payment by making 3 journal entries, debit sales tax payable, credit checking account, debit owner draw because the business paid my personal tax. So in effect, I got the money from the business to pay my personal tax. In the check register, the journal entry number appears and I listed the check number in the memo field. Everything looks correct in the accounts for debits and credits. Is there a better way to handle this transaction? From a bookkeeping standpoint, I'd like to pay the state with a personal check, but a sole proprietorship isn't permitted to do that.
Bob