Forum Discussion

KGrove's avatar
KGrove
Contributing User
6 years ago
Solved

BAS entry and ATO repayments

We owe the ATO and are paying it off every month.    The statement I just received has the fuel tax credit as a credit into the account, therefore reducing our overall debt with them.    I've sta...
ATO
BAS
  • IanChait's avatar
    IanChait
    6 years ago

    Hi KGrove 

     

    The simplest entry I would suggest is

    DR Payments to the ATO

    CR Fuel Tax Income 

     

    the entries for the rest of the BAS would be

    DR GST Collected

    CR GST Paid

    DR PAYG Withholding

    CR Payments to the ATO

     

    I would call the account ATO - Integrated Client Account, which is the ATO terminology and then you can reconcile it to the ATO statement if necessary.

     

     

     

IanChait's avatar
IanChait
Ultimate Partner
6 years ago

Hi KGrove 

 

The simplest entry I would suggest is

DR Payments to the ATO

CR Fuel Tax Income 

 

the entries for the rest of the BAS would be

DR GST Collected

CR GST Paid

DR PAYG Withholding

CR Payments to the ATO

 

I would call the account ATO - Integrated Client Account, which is the ATO terminology and then you can reconcile it to the ATO statement if necessary.

 

 

 

  • KGrove's avatar
    KGrove
    Contributing User
    6 years ago

    Hi Ian, Thank you. With the GST collected. that isn't on the ATO ICA statement. How would the journal be done? from where to where? GST paid? 

    • IanChait's avatar
      IanChait
      Ultimate Partner
      6 years ago

      Hi KGrove 

       

      I like to match the numbers exactly to the ATO Statement, so my journal is as this example

      DR GST Collected       100.00

      CR GST Paid                             25.00

      CR ATO Account                      75.00

      DR PAYG Withholding  50.00

      CR ATO Account                      50.00

       

      I use this procedure for any other amounts such as PAYG Instalmemts, Fuel Tax Credits.