Hi Alan,
Assume a company collected Gst/Hst on sales 100$ and paid 150$ Gst/Hst on purchases. The company received 50$ cheque to be deposited in the company’s account. To report the 50$, on the Trial Balance sheet, the Bank Account will be debited 50$ and the Shareholder’s Advances Account will be credited 50$, or I have to credit Receivable Account? Could you advise please?
Thank you
Record the following transactions in this order:
1) Debit Cash $100 and Credit GST/HST Payable for $100 (to record HST collected on sales)
2) Debit GST/HST Payable for $150 and Credit Cash for $150 (to record HST paid on business purchases)
3) Debit Cash for $50 and Credit GST/HST Payable for $50 (to record GST/HST Refund)
If you follow the above steps, the GST/HST account should net to $0.
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