Handling GST and PST from Credit Card tranactions
Doctorcam
cam at ellisonpsychology.ca
Sun Jan 30 19:10:28 EST 2005
* Russell Sutherland (russ at quist.ca) wrote:
> Doctorcam wrote:
>
> >First question is: are these business-related?
>
> Yes they are.
>
>
> >charging HST (GST + PST, where there is a Federal-Provincial
> >agreement) or GST to customers, your best bet is to set HST up as a
> >Liability account, and then set up 3 sub-accounts: HST Payable (this
> >is what you charge your customers), HST Paid (this is what you pay on
> >eligible goods and services, and is signed negatively), and HST
> >Payments (what you have actually paid to Ottawa). HST Paid is known
> >as a contra-account.
>
> Thanks. How does one create/edit an account so that it is signed
> negatively or is a contra-account?
It actually happens as part of entering the data. I have a
transaction report that keeps a running list of GST entries (I'm in
BC, where PST and GST are done separately). The GST Paid items always
show up as a negative, as do the GST Payment entries. GST Payable is
positive. Just create the accounts. It will work.
When you purchase something, enter it into the appropriate account
(i.e. Credit Card, Petty Cash, Chequing), and use the split button to
work on the detail. For example, if I purchase postage stamps, I
enter the total, then click on the split button, and then enter the
actual cost of the stamps in place of the total. Opposite the new
line that appears (the GST), I select the Liabilities:GST:GST Paid
account, and it's all done.
Please ask, if you have more questions.
Cheers
Cam
--
Cam Ellison Ph.D. R.Psych. #01417
Cam Ellison & Associates Ltd.
Management Psychology
RR 22 3446 Beach Avenue
Roberts Creek BC V0N 2W2
Phone: 604-885-4806
Fax: 604-885-4809
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