Ask Allan Forum
Get expert answers to your tax questions straight from Allan, our owner and experienced CPA. It’s free, direct, and designed to help you make the best decisions when it comes to your taxes.
Hi Alan,
Assume a company collected Gst/Hst on sales 100$ and paid 150$ Gst/Hst on purchases. The company received 50$ cheque to be deposited in the company’s account. To report the 50$, on the Trial Balance sheet, the Bank Account will be debited 50$ and the Shareholder's Advances Account will be credited 50$, or I have to credit Receivable Account? Could you advise please?
Thank you
Record the following transactions in this order:
1) Debit Cash $100 and Credit GST/HST Payable for $100 (to record HST collected on sales)
2) Debit GST/HST Payable for $150 and Credit Cash for $150 (to record HST paid on business purchases)
3) Debit Cash for $50 and Credit GST/HST Payable for $50 (to record GST/HST Refund)
If you follow the above steps, the GST/HST account should net to $0.