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GST Balance Account and Balance Sheet Report

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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

1 REPLY 1
LRBooks61
Ultimate Cover User
1,054 Posts
Ultimate Cover User
Australia
Ultimate Cover User

1,054Posts

253Kudos

124Solutions

Re: GST Balance Account and Balance Sheet Report

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

 

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