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SmartBizHQ's avatar
SmartBizHQ
Partner
2 years ago

GST Balance Account and Balance Sheet Report

Hello

 

Can anyone please explain why the balance of the GST Balance Account is negative in the general ledger and the account in the Balance sheet is postive?

 

Liability account - don't get it.

 

Cheers

Julie

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  • LRBooks61's avatar
    LRBooks61
    Ultimate Cover User
    2 years ago

    Hi

     

    a liability account is a credit account (-)

     

    so if the balance is a negative it shows in the balance sheet as a whole figure as it is an assumed negative 

     

    if the liability is positive it would show as (54)

     

    as an example a loan in the liability account would show as $50000

    less unexpended interest (500)

     

    hope that helps to explain 

     

    Lisa