Skip to main content
R
rgayle
March 12, 2019
Solved

What is the correct journal entry when entering interest/penalty on GST/HST returns?

  • March 12, 2019
  • 2 replies
  • 0 views

What is  the correct journal entry when entering interest/penalty on GST/HST returns?


Best answer by NEVER

It is not a Journal Entry - Penalties and Interest payable to the CRA should be recorded as a bill from Receiver General and posted to a Penalties/Interest Expense type account. The transaction is unrelated to GST remittances and must not affect the GST Payable or GST Expense Accounts.

2 replies

R
rgayleAuthor
March 12, 2019
Thank you. So then should I write a cheque paid to CRA and charge an Interest/Penalty expense account?
N
NEVERAnswer
March 12, 2019

It is not a Journal Entry - Penalties and Interest payable to the CRA should be recorded as a bill from Receiver General and posted to a Penalties/Interest Expense type account. The transaction is unrelated to GST remittances and must not affect the GST Payable or GST Expense Accounts.

R
rgayleAuthor
March 12, 2019
So should I then write a cheque payable to C.R.A and charge the interest/penalty expense account?
Terms & ConditionsAccessibility statement