GST Balance Account and Balance Sheet Report

SmartBizHQ · August 2022

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

LRBooks61 · August 2022

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