How do I record a GST refund from the government into my business bank account?

Forum|Forum|3 years ago
September 19, 2022
2 replies
27 views

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JamesM4

Level 6

Hi kristincodling,

Welcome to the Community. QuickBooks is a powerful program that helps you manage your work with peace of mind. I'll be glad to share more info so you're on the right track with your work.

Making sure you're recording your transactions properly is an essential step for maintaining clean books. To ensure accuracy in your books, I recommend reaching out to an accounting professional for expert advice on this. If you're not in contact with a professional, don't worry, you can search for one using this link here.

I'll also leave this question open in the Community so other accountant users can share their advice. Otherwise, feel free to ask other questions, I've got your back.

cloud7

Hello,

There are different ways to record that. I am giving you below a simple example. If you need any more clarification, please do not hesitate to contact me by phone or email

Journal entry for GST refund

For Example, On March 31st, 2022, ABC Inc. filed quarterly GST return and you are expecting refund from CRA?

During the period 2022-01-01 to 2022-03-31 , ABC Inc. collected total GST of $500 on sales and paid GST on purchases of $400.
Find below to show that journal entry:
Date	Account	Debit	Credit
31-Mar-22	GST collected on sales		500
31-Mar-22	GST paid on purchase	400
31-Mar-22	GST refund receivable	100

On April 15, 2022, ABC Inc. received a refund $100 deposited on the bank account from CRA. To record the refund received:
Journal entry should look like this:
Date	Account	Debit	Credit
15-Apr-22	Cash	100
15-Apr-22	GST refund receivable		100

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