GST total paid and GST total invoiced that has to be paid back
Andrew Greig
algreig at bigpond.net.au
Mon Apr 17 07:53:48 EDT 2006
On Mon, 2006-04-03 at 19:08 -0700, Cam Ellison wrote:
> I actually use 3 Liability sub-accounts, like this:
>
> Liabilities
> |
> --GST
> |
> |--GST Collected (from clients)
> |--GST Paid (paid for goods and services)
> |--GST Payments (paid to CRA)
>
> Instead of entering the GST you pay for goods and services as
> Expenses|Taxes|GST, enter it as Liabilities|GST|GST Paid, and so on. It
> will automatically show as a negative (and so will GST Payments). Your
> accountant can undoubtedly give you a better explanation than I can.
>
> These two oppositely-signed accounts (GST Paid & GST Payments) are
> called contra-accounts.
>
> Works like a dam for me, because the GST parent account always shows
> what I owe.
>
> Cheers
>
> Cam
Hi Cam,
Thanks for that valuable tip. I had been trying to copy the MYOB setup
for GST but had not gone far enough. So today I set up the parent
account and then tucked the others under it, also adding the GST Payable
account.
I just need to get the next stage right in my head.
I see the balance owing by me to the Tax man as a positive amount. So
when it comes time to pay the amount owing, do I just go into the
Checking account register (since there is no invoice )and pay from the
checking account as a withdrawal, and then select GST Payable as the
balancing account? Will it show up in that account as a negative
amount, and thus counteract the amount shown in the GST parent account?
Yours sincerely
Andrew Greig
Melbourne, Australia
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