Question

Tax collection fund: JE to record county collections and retaining of a fees %______

Answer 1

The tax collection fund is a financial account used to record county collections and the retaining of a fees percentage. It involves journal entries to debit the tax receivable or tax receivable control account, credit the tax revenue account, debit the tax revenue account for the fees percentage retained, and credit the tax collection fund or fund balance account.

Step-by-step explanation:

The tax collection fund is a fund that is used to record county collections and the retaining of a fees percentage. It is a financial account where taxes and fees collected by the county government are recorded.

Here is a step-by-step explanation of how to record county collections and retaining of a fees percentage:

1. Debit the Tax Receivable or Tax Receivable Control Account to record the amount of taxes collected by the county government.
2. Credit the Tax Revenue or Revenue Account to record the amount of taxes collected.
3. Debit the Tax Revenue or Revenue Account to record the fees percentage retained by the county government.
4. Credit the Tax Collection Fund or Fund Balance Account to record the retained fees.

For example, let's say the county government collected $10,000 in taxes and retained 5% as fees. The journal entries would be:

Debit Tax Receivable Control Account: $10,000

Credit Tax Revenue Account: $10,000

Debit Tax Revenue Account: $500 (5% of $10,000)

Credit Tax Collection Fund Account: $500