MegC
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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 journal entry to clear GST collected and GST paid accounts for the return. I enter the GST collected amount, the GST Paid amount and then the GST Payments/Refunds amount (which is what I actually received). I am obviously left with the small amount of interest paid by IRD which needs a Credit transaction to balance the entry. My best thought is to enter a Credit to GST Payments & Refunds and memo it Interest Paid by IRD. Would welcome any suggestions on how others have dealt with this?Solved3.8KViews0likes3Comments