PAYG Instalments and tax return

Question

Hello,

Each time I lodge a BAS I post the PAYG Instalment to the PAYG Instalment asset account. Is there a journal entry that I’m supposed to do once the tax return for those periods has been lodged? There must be or else that asset account would continue to increase over time when the instalments have already been used in the tax return each financial year. I can’t figure it out. Thanks Kathryn

Tracey_H · Accepted Answer

Hi @KathrynMackenzi

Thanks for your post. You are correct that a general journal would be processed to account for the PAYG Instalments. Generally speaking, your accountant would provide you with a list of end of year adjustment journals, including the PAYGI journal, to be recorded in your software once your tax return has been lodged. Or, if you have invited them as a user in your file, they may record those journals themselves.

Please let me know if you need further help.

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