Accounts Receiveable

Hi there,

I’m pretty thick when it comes to some of this stuff. Ive been trying for the last few hours to figure out how to clear Accounts receiveable when an account is paid. I can clear it but for some reason the income doesn’t show in the GST account. Ive posted a couple of screen shots which may help. The first one is the original entry (in Jan)and the second (in Feb) shows how Im trying to clear the account after payment hes been received.

Any comments appreciated on how to clear this and show in GST return, and thank you.

Grandpa (Grumpy)

It is not clear exactly what you mean. Income is not in your GST liability account as a result of your sales invoice. Only the tax will be in the tax liability account. Your receipt is not fully shown, but should not have any tax code applied. The receipt will credit Accounts receivable, but does not touch the tax liability account. The tax liability account will be debited when you pay the tax authority what you owe, posting the payment to the tax liability account itself. Paying the tax you owe has nothing to do with the sales invoice.

Thanks for your help. It made me have a closer look and understand a little better,