October 30, 2016 admin

GST Payable

Liabilities and Net Worth

GST PAYABLE
(GOODS & SERVICES TAX)		 LIABILITY ACCOUNT
2162

ACCOUNT EXPLANATION
GST collected from customer on sale of vehicles, parts, service labor, body shop labor, etc. for remittance to governmental agencies.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Sale of New vehicle NV
    Cash Sales—Clearing 1010
      GST Payable 2162
      Sales—New Vehicle 3000-
etc.
             
  Payment of GST to Government Agency CD
    GST Payable 2162
      Cash in Bank—General 1001
      GST Receivable 2163
           
  Sale of parts PS  
    Cash Sales—Clearing   1010
      GST Payable     2162
      Sale—Parts     5400-
etc.
COMMENTS
  • The collections and remittance of GST should conform with the regulations of the taxing authorities.
  • Any balance remaining in the account at month end should be reconciled to the supporting information.
  • Remittance to governmental agencies should be balance of the Account 2162 minus balance of Account 2163, GST Receivable.