Hi, I have seen a previous post but the answers do not cover all I want to know.
The Australian Tax Office has deposited my personal tax refund (I am a sole trader) into my business account, which shows up as “income” when it’s not really. I read the old reply (in 2015) and I was going to tell my accountant to change my bank account for next years refund to my personal bank account but it occurred to me that in the past I have had years when my business has owed money to the tax dept, ie gst or payg at the end of the financial year and they have just used my personal refund to pay this debt
. My question is if I change my bank account for the refund, how would I account for the payment of any gst or payg if they use my refund on my books?
I would appreciate your help on this and I hope I have expained my dilemma.
Thankyou
Create a journal entry debiting the amount to the PAYG W/H payable or GST payable accounts and credit your capital account.
Thanks Tony.