Gas Receipts Bookkeeping Question

by Cherie
(Ontario, Canada)

Gas Receipts

Gas Receipts

When recording gas receipts, what type of expense are they - vehicle, travel, un-categorized?

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Jun 08, 2018
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starstarstarstarstar 		Accounting For Gas Receipts
by: Stephanie

Thank you for your gas receipts bookkeeping question.

Gas receipts for business are recorded as a vehicle expense and will show up on your profit and loss statement.
Mar 19, 2011
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by: Universal Bookkeeping in Comox, BC

Hello,

So the comment above is correct but I did want to add one thing. As a bookkeeper you can also create whatever accounts you want so you can create a fuel account as a sub account under vehicle expenses that way you will have a total of all your vehicle expenses but also break down totals of your fuel, repairs etc.

www.universalbookkeeping.ca We work with clients throughout Canada.

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Gas Receipts and Lunch Receipts

Hi, Example I keep my gas receipts for the month. I keep my client lunch receipts for the month.
I have to submit HST taxes quarterly in Ontario Canada.

My first question is do I subtract the HST/gst tax I paid for the gas for the month from the taxes I collected? Second question is for the lunches, we are able to technically write off 50% of our business lunch meals, so do I subtract 50% of the taxes I paid for the lunches from the taxes I collected in my sales in my remittance? Thanks

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Aug 24, 2023
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starstarstarstarstar 		HST Harmonized Sales Tax
by: BB

Certainly! Please note that tax laws can change and it's always advisable to consult with a tax professional in your jurisdiction for your specific situation. However, I can provide some general guidance for your questions:

First Question: In Ontario, Canada, the Harmonized Sales Tax (HST) combines the federal GST with the provincial sales tax. As a business, you can usually claim an Input Tax Credit (ITC) for the HST/GST paid on business-related expenses like gas. This means that you would subtract the amount of HST/GST paid on the gas from the HST collected on sales when you file your quarterly return.

Second Question: For business meals and entertainment expenses, you are generally able to claim 50% of the cost as a deduction. The same principle applies to the HST/GST paid on those meals. You would calculate 50% of the HST/GST paid on those lunches and claim that amount as an ITC, subtracting it from the HST collected on your sales.

So, yes, in both cases, you would subtract the relevant amounts from the taxes you collected in your remittance.

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Gas Station Accounting

by Dee
(Vermont, USA)

The gas at my gas station is not inventory. It is owned by Sunoco.

As an example - say I sell $5000 of gas in a day - of this amount $50 is my take on the sales and the other $4950 is due to Sunoco.

I am trying to figure what the GL entries would be - do I count the $5000 as income and the
$4950 a Cost of Goods Sold with the $50 balance being a deposit???

Or is only the $50 income (increase income by $5000 then reduce income by $4950) with the offset being the deposit??

Then if I throw in customer Sunoco discounts that they receive at the pump. As an example if I sell $5000 of gas in a day with a discount given to customers of $100 and my take amount of $50.

Would the discount amount be an expense item, or a reduction in the income item or a cost of goods sold item?

Thank you for your assistance,

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Oct 12, 2010
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by: Anonymous

In the 1st Case. (Accrual Method)

All you have to do is deposit the money in your bank and record Bank $5000(DR), Revenue $5000(CR).

When preparing your P/L, the account will look like below"

Dr. COGS $4950
Dr. Acct Receivable $50
CR Revenue $5000

2nd case

Dr COGS $4850
Dr. Discount given $100
Dr. Acct Receivable $50
Cr.Revenue $5000

The above suggestion applies to small business not subject to IRS rules.

Balance Sheet.

Assuming you deposit the money in your bank in case 1 above:

Dr Bank $5000
CR Inventory 5000

When you write a check of $4950 to pay Sunuco, after deducting your $50, bank decrease by $4950(CR), Current liability decrease by $5000(DR), Accounts receivable decrease by 50(CR).

U can address the discount issue the same way. depending on how your account is set up. It could be a reduction in revenue or just as expense. either way just cut $4850 for Sunuco'

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