EOFY GST reconciliation

Carolyn-Foeken
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Carolyn-Foeken
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EOFY GST reconciliation

How do I record a GST payment made to the ATO in FY 2017 but the debt incurred in FY 2016.  So that the payment does not show as an expense in the 2017 P&L or Balance sheet.

 

  

2 REPLIES
Super Partner IanChait
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IanChait
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Re: EOFY GST reconciliation

Hi @Carolyn-Foeken

 

If the debt was incurred in 2016, there should be Liability on the Balance Sheet for this amount. You would then record the payment to that account. Some accountants will create an Account called something like ATO Integrated Client Account, or Running Balance Account. They may have left the outstanding amount in the GST Collected and GST Paid Accounts.

 

Wherever it is, the payment should go to the Balance Sheet, not the Profit and Loss.

 

 

 

 

Regards
Ian Chait CA
Certified Consultant Melbourne
P/M 0417 479 585
Fax 03 9012 4488
Email ian@myfc.com.au

Ultimate Partner Seattle
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Re: EOFY GST reconciliation

@Carolyn-Foeken @IanChait

 

Carolyn,

 

As Ian suggests, a payment to the ATO does not affect the P&L.

 

I setup up a ledger called BAS April - June 20xx.

My experience is that most Tax Accountants do not do this.

 

Duncan

Duncan Smith
Business Advice + Tax
Helping business owners build a better business since 1998
E expressgst@optusnet.com.au T 02 9904 3672 7 days
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