What is gst receivable

what is gst receivable

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Thanks, Rita. A few more questions regarding your last post: the sales for the first quarter were "00", as it is a new company. I assume, I don't need to debit GST on services then? In my case, it should be Bank - DR; GST paid - CR.

Also, do I have to credit GST paid as a positive amount? (when I do remittance through Payment journal I enter GST paid as a negative amount).

Hi again: Yes, if there was no GST Charged on Sales you do not need to enter an amount into that account to clear it. Your entry would be a debit to Bank and a credit to GST Paid on Purchases. One other thought here. There will be interest earned on the refund, so you will need to separate out that amount and put it to an "Interest Income" account. Don't forget that. They should have it clearly stated on the receipt that you get with the cheque. If they don't, the difference between what you stated on your GST return as GST Paid on Purchases and the total refund amount will be the interest earned.

Your entry can be done in the General Journal when

you make the deposit of the refund. As stated, the entry will be a debit to Bank and a credit to GST Paid on Purchases (and a credit to Interest Income as well). There is no negative or positive -- only debits and credits. If you put the numbers on the correct side of the general journal entry, it will do the right thing in the accounts.

When you enter a remittance through the Payments window, you should not be entering any amount as a negative (with a minus sign in front). There is no need for that. The entry will automatically be a credit to Bank (because you are entering a payment out of the bank) and the other side of the entry will be a debit to whatever account you are paying, be it an Accounts Payable account or if you are using the Make Other Payment or Pay Remittance choices, whichever account you are clearing. There are very few times where a situation calls for you to enter a negative amount (with a minus sign in front). One that comes to mind is if you are issuing a credit note in the Purchases window for instance.

Hope this helps. Rita Deering

Source: sagecity.na.sage.com

Category: Bank

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