Forum Discussion

MegC's avatar
MegC
Cover User
6 years ago
Solved

Interest received from Inland Revenue on GST Refund

I have received a GST refund from Inland Revenue, which includes interest over and above the return amount, for paying early.  My problem is not with the original GST entry but when I enter the journ...
  • Murray_McKenzie's avatar
    Murray_McKenzie
    6 years ago

    Hi Meg

     

    Your interet should be credited to an income account - generally in the 8-xxxx, Other Income section, and specifically called Interest Received. If you put it to a GST account it will wrongly sit in the balance section when it is an income to the business.

     

    Hope this helps

     

Murray_McKenzie's avatar
Murray_McKenzie
Ultimate Partner

Hi Meg

 

Your interet should be credited to an income account - generally in the 8-xxxx, Other Income section, and specifically called Interest Received. If you put it to a GST account it will wrongly sit in the balance section when it is an income to the business.

 

Hope this helps

 

MegC's avatar
MegC
Cover User
6 years ago

Thank you very much.  I have set up an 8-XXXX for Interest Received IRD.  I already have Interest Received accounts for the various bank accounts so this makes perfect sense.  Thanks again.

  • MegC's avatar
    MegC
    Cover User
    6 years ago

    Oh ... should I also have entered the interest received separately on my original entry when I recorded the payment from Inland Revenue?