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juliea9
October 21, 2022
Question

Refund for interest relief on HST

  • October 21, 2022
  • 1 reply
  • 0 views

How would I record a refund from CRA for HST interest and penalties relief? 

I originally recorded as "record deposit"..received from was Receiver general, account was Finance Charges. 

The original penalties TO cra was paid as a bill payment to receiver general and account was finance charges. 

I now realize that HST penalties are non-ded, so I need to create a journal entry to correct this. 

 

Accountant wants me to create a journal entry at year end 9/30 as the deposit FROM cra was 10/8, so it needs to go back to the previous year. 

They are requesting the following journal entry but it is NOT working for me and is causing Receiver General to have a negative balance that I can't clear. 

Accounts payable -  D$1,000

Finance Charges - C$1,500
Non-Ded IP - D$1,500
Non-Ded IP - C$1,000

 

Should it not be the AR account instead of the AP account since I am receiving the money from CRA? 

 

Please help! 

 

1 reply

A
Alex M
October 21, 2022

Hi there juliea9,

 

It's important that all your transactions be entered correctly in your books for them to be well balanced. QuickBooks Desktop is a great program able to helps you keep track of your transactions so that you can see the financials of your business. I can point you in the right direction for assistance with your journal entry. 

 

For further assistance with this journal entry, it would be best to contact your accountant for guidance. They'll be to use their expertise to provide corrections to the original accounts if need be, and provide more steps to clear it from the accounts that need to have it cleared from so that all your accounts can balance.

 

If you have any other questions, feel free to reach out here.

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