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ddaejm7
June 15, 2020
Question

GST Journal Entry

  • June 15, 2020
  • 1 reply
  • 0 views

 

 

Cient is a yearly GST payer

 

1- My client had to pay 2018 and 2019 GST but their GST wasn't set up in QBO until 2020. I did a JE  debit GST Payable and credit GST Suspense. Was this the best way to do this?

 

2- After doing the JE for 2018 and 2019 and filing with the CRA, the client came back with more expenses. I know these ITC's can be used in 2020. Should I create a GST Owing/Refund acct and then a JE debit GST Payable and credit GST Owing/Refund? If so, when I file GST for 2020, how to do I ensure the missed ITC's are then claimed and properly recorded so the clients records are properly maintained?

 

3- My client paid the GST via transferring money out of the account to herself and paying at the bank, in the bank feed how do I match this to the JE done in part 1? 

 

Many thanks!

 

 

1 reply

Rajanikanth
Rajanikanth
March 19, 2021

Hi, ddaejm7

1.

 A. Post a journal entry for the opening balance

 Debit  - Opening equity balance

Credit - GST Payable 

B. To File the return 

Debit GST Payable

Credit GST Suspense 

C. For GST Payment use the Expense/Cheque screen and select GST Suspense account as a category.

2. Simply enter the expenses in QBO with GST/HST amount and file the return.

3. Instead of journal entries use the expense screen and reverse/delete the journal entries assuming the transfer amount is to equal the GST paid amount simply match expense against the bank feeds.

 

Feel free to contact me for any clarifications.

 

 

 

 

 

 

 

 

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