Commissions And GST Bookkeeping Question

GST

Should there be GST on Commission payments made to third party agents?

Accrued Income and GST Expenses

Please Help GST

Hi, I was wanting to know how to record accrued income and expenses in myob.

With my course that I have just completed on manual balance day adjustments it states that the gst on accrued income and expenses are recognized, but I know you should never post to a control account like gst paid and collected in myob as it will throw out your balances for the actual gst paid and collected for BAS.

So, how should the adjustment for accrued income of $550 including gst be? I know you credit the income account and debit the asset accrued income account, but how do I account for the gst?

Should I be creating a liability account called accrued gst paid so it is separate from the gst paid control account?

Goods Service Tax

by Jenny
(British Columbia, Canada)

I am not registered for a GST #. I am not collecting GST. When I am entering bills that have GST on them what account do I use for the GST. What is the name of it?

Hello Jenny,

Thank you for your question.

I believe you can just lump the GST into whatever it is that was invoiced. Otherwise if you would like to separately categorize it, you would probably use a Tax Expense or Taxes Paid account.

HST/GST Rebate for a registered Canadian charity

by Ralph
(Nova Scotia)

OK here's the problem: I am trying to close off the fiscal year ending March 31, 2009. Four years ago, we registered a small Canadian charity. I took a short course on Simply Accounting. I've learned that as a charity we can apply for a rebate of 50% of money we have spent on HST/GST in the past fiscal year and indeed, can also apply to get the same 50% rebate for the previous 3 years. (In total= 50% of all goods & setvices tax paid in the 4 year period). In Simply Accounting HST/GST appears as a debit to Account #2260 HST/GST paid on Purchases. (Not to Account #5125 HST/GST Expense).

To try to keep this simple, let us say we paid $500 HST/GST each year for the four years. Thus the debit balance in Account #2260 HST/GST paid on Purchases is now $2000 and the balance in Account #5125 HST/GST Expense has always been nil.

I believe entries for $500 this past year should be: Debit revenue Account #4240 CCRA - HST/GST Rebate $250 Debit Account #5125 HST/GST Expense $250
Credit Account #2260 HST/GST paid on Purchases $500

But how do I properly account for the $750 rebate from the 3 previous years without mis-stating my books? Revenue of $750 I suppose can be considered in the year it is received but the $1500 sales tax paid on purchases all relates to prior periods. And, when I start the new period, I'd like to have a zero balance in that account #2260

Term discount on G.S.T.

by Lyn Perry
(Toronto, On, Canada)

Terms of 1%/10. Is the 1% to be taken on the whole invoice amount including G.S.T. or does the discount only apply to the product and customer has to pay the total G.S.T. amount charged?

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