Canadian GST/HST Rebate

[Wiliam Colls]

On 04/13/2012 09:39 PM, Larissa Hayward wrote:
>
> Hello,
>
> I am a Canadian small business owner and we received a GST/HST rebate. Can someone tell me the correct way to enter this in Gnucash?
> Thanks,
> Larissa
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Depends on how you set up your GST/HST Accounts.

I use three liability accounts: GST Collected, GST Paid, and GST 
Payable. For each taxable transaction, the GST amount gets posted to one 
of GST Collected, or GST Paid. At the end of each reporting peerod, 
Quarterly in my case, I would make a General Journal entry to debit GST 
Collected , credit GST PAid, and a balancing entry to GST Payable which 
reflects either the amount I must remit, or the amount the feds owe me. 
Then, when I cut a cheque, or receive my rebate, the posting is to bank, 
and GST payable. For exampole, suppose during the quarter I have 
collected $50.00 in GST, but have paid out $100.00. So at the end of the 
quarter My GST Collected account has a credit balance $50.00, and my GST 
Paid account has a debit balance $100.00. The end of quater GL entry is:

GST Colleceted                $50.00
GST Paid                               $100.00
GST Payable                   $50.00

I make my submission to the feds, and they send me a cheque for $50.00.
I now make a General Journal entry:

Bank                           $50.00
GST Payable                            $50.00

William.




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