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Post debit withholding tax on interest earned on bank account during bank statement

pmorais1985
Explorer
0 Kudos

Hello,

my customer receives 81 euros net interest earned on bank statement. The bank withheld 19%. How do I configure electronic bank statement to post:

Dt Bank 81

Ct Interest earned 100

Dt Withholding tax 19

My client at year end reclassifies

Ct Withholding tax 19

Dt Interest tax expense 19

Does this make sense from accounting perspective? Shouldnt one post with the EBS like this?

Dt Bank 81

Ct Interest earned 81

Thanks for any tip.

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