October 30, 2016 admin

GST Receivable

Liabilities and Net Worth

GST RECEIVABLE (GOODS & SERVICES TAX)	LIABILITY ACCOUNT
	2163

ACCOUNT EXPLANATION
TRANSACTIONS
COMMENTS

ACCOUNT EXPLANATION

GST paid by dealership on purchase of goods or services which can be claimed back from the government through the Input Tax Credit.

TRANSACTIONS

					Jrnl.	Dr.	Cr.

	Purchase of new vehicles from Ford of Canada				VP
		Inventory—New Vehicles				1300- 1310
		Ford Receivable—Vehicle Holdback				1160
		GST Receivable				2163
			Notes Payable—New Vehicles & Demonstrators				2000

	Purchase of parts from Ford of Canada on Open Account				P
		Inventory—Parts—Ford				1400
		GST Receivable				2163
			Accounts Payable—Trade				2100

COMMENTS

Any balance remaining in the account at month end should be reconciled to the supporting information.
Balance of this account is cleared when GST remittance is made to governmental agencies. See Account 2162—GST Payable.