CHAPTER 4: Love It Again
Review Questions
1. Why is it important to add non-postable account s to your Chart of Accounts?
Non-postabl e accounts hel p to organi ze accounts i nto groups of rel ated i tems They all ow you to see subtotal s for these groups because the program cal cul ates them automati call y Sage 50 requires at l east one Headi ng and Total for each of the fi ve secti ons of the Bal ance Sheet and Inco me Stateme nt
2. Why should you leave spaces between account numbers wh en you create th e Chart of Acco unts in Sage 50?
Spaces betwee n adj ace nt ac count num bers all ow you to enter new accounts l ater wi thout bre aki ng the logical sequence of the acco unt groups Si nce account numbers c annot be changed once the account has been used for journal entri es, this i s an eas y way to i nsert these new accounts l ater.
3. What is the backup frequency setting? Why is it important? How do you change it?
The backup fre que ncy setti ng determi nes how fre quentl y (rel ati ve to the sessi on date) the program remi nds you to back up your work. Change the backup freque ncy from the Home wi ndow, Setup menu, Settings opti on, (or cli ck the Setti ngs i con) and choose Company and B ackup.
4. What does it mean if a field, menu option or tool on your input screen is dimmed?
Di mmed i cons or menu opti ons cannot be sel ected or accessed. Some addi tional features and opti ons are not avail abl e when you are wor ki ng i n mul ti - user mode, so these opti ons will al so be di mmed.
5. Describe two ways to access th e General Ledger reco rd for a n account.
From the Home wi ndow, cli ck the Chart of Accounts i con and the n double-cli ck the i con or name of the account (or cli ck the account to sel ect i t and then choose Edi t from the Edi t menu or cli ck the Edi t tool) to open the l edger record From any l edger record, cli ck the Sel ect Account fi el d and choose (cli ck) the acco unt you want fro m the li st to open i ts l edger record.
6. How are the Earliest Transact ion date and session date different?
The Earli est Transacti on date i s the start of the fi scal peri od or the date that the sys tem was converted to Sage 50, and after the l ast date for hi stori cal i nformati on or openi ng bal ances It will be the earli est date you can choose for journal transacti ons The sessi on date i s the date that the accounti ng tr ansacti ons are entered i nto the computer. In a regul ar busi ness, the se ssi on date i s usuall y the calendar d ate and i s updated regul arl y by the user. The program upd ates the E arli est Trans action d ate automaticall y to the new fi scal start d ate whe n you start a new fi scal period. Before fi ni shi ng the hi story, the session date i s the E arli est Transacti on date.
7. What does the Open History symbo l on the Chart o f Accounts icon indicate? Ho w do you remove it?
The open hi story (not-finished) symbol means that you can stil l add hi stori cal i nformati on and openi ng acco unt bal ances. Journal trans acti ons can al so be e ntered at thi s stage.
To remove the symbol , i.e., fi ni sh the l edger hi story, you must have e ntered al l accounts that have openi ng bal ances wi th thei r hi stori cal account bal ances, de bi ts must e qual credi ts i n the Tri al Bal ance and al l accounts must be i n l ogi cal order (no mi ssi ng Headi ngs, Subtotal s, Total s, etc.) If you are not usi ng other modul es and these are not set up, you must hi de them The n choose Fi ni sh Enteri ng Hi story from the Hi story menu i n the Home wi ndow.
8. What is the difference betw een postable and non-postable acc o unts?
Postabl e accounts have bal ances and c an be sel ected for enteri ng journal transacti ons. Thei r bal ances are affected by journal entri es. Group and Su bgroup Accounts are postabl e accounts. Non-postabl e accounts (headi ngs, total s and su btotal s) have no account bal ances but are used to organi ze the accounts i n the fi nanci al state ments. The singl e Type X account, Current Ear ni ngs or Net Income, i s a speci al non- postable account who se bal ance i s updated di rectl y by the program from any changes i n e qui ty and reve nue account entri es
9. How are Subgroup accounts d ifferent from G roup accounts? Why is it important to use Subgroup accounts?
Both Group and Su bgroup accounts are posi tioned between He adi ngs and Total s and both are postabl e accounts. Subgroup accounts must be foll owed by a Su bgroup Total account. Thei r bal ances are added together to form thi s subtotal . On the fi nanci al stateme nts, Subgroup account bal ances are pri nted i n a separ ate col umn to the l eft of the Group account bal ances. Thei r subtotal i s pri nted i n the ri ght-hand si de col umn with Group account bal ances. The Group acco unts are added together with the Subgroup Total accounts to cal cul ate the To tal for the section.
Incl udi ng Subgroup accounts hel ps to gi ve a more detail ed breakdown of the fi nanci al reports by showi ng subtotal s for rel ated accounts
10. What does it mean to finish the history in a Sage 50 data file?
Fini shi ng the history me ans cl osi ng access to hi stori cal informati on and openi ng bal ances (from before the Earli est Transacti on date) so that the se cannot be changed.
11. What happens when you select a different industry or company type for a data file?
In the Pre mi um versi on, selecti ng a di fferent i ndustry type will change the journal and l edger i con l abel s to the set appropri ate for that industry. For exampl e, the term for Vendors may change to Suppli ers or Provi ders. Fi el d names, journal titl es and report names will al so change to match t hese terms. In the Pro versi on, terms do not change.
12. Why is it important to make a backup copy of your data files before you finish the history for the General Ledger?
Maki ng a backup before fi ni shi ng the hi story all ows you to change account bal ances to correct errors wi thout re-enteri ng al l the setup i nformati on. Once the hi story i s fi ni shed, you can edi t account numbers and names but no t bal ance amo unts. Once journal transactions are entered, you cannot change accou nt nu mbers. 13. What types of erro rs can prevent you from finishing the hist ory? What kinds of erro rs mig ht go undetected?
If the accounts are not i n l ogi cal order, you will be unabl e to fi ni sh the hi story A mi ssi ng subtotal after a subgroup account, a mi ssi ng su bgroup account before a su btotal , a mi ssi ng he adi ng or a mi ssi ng total will resul t i n thi s type of error. If the other modul es are not set up, you will be unabl e to fi ni sh the hi story if requi red i nformati on for these modul es (li nked accounts) i s mi ssi ng.
Mi ssi ng accounts, i ncorrect account names, i ncorrect account numbers or i ncorrectly grouped accounts (as l ong as the se quence of account types still follow the logi cal order) are exampl es of errors that may re mai n undetected. Al though Sage 50 forces the debi t bal ances to equal the credi t amounts, one or more account bal ances may be i ncorrect or there may be an amount mi ssi ng
14. What does it mean if the sessio n date is July 10 and the Latest Transaction date is July 31?
There i s at l east one journal entry dated Jul y 31, that i s, there i s one or mo re post-dated entri es Future d ati ng of transacti ons has bee n all owed for the data fil e.
15. Why is it helpful to create a separate “test balance” account ? If you did not have this account, how could you determine whether your Trial Balance amounts w ere correct?
The “test bal ance” account i s the hol di ng account we created for bal anci ng the Tri al Bal ance when openi ng account bal ances are entered but are not yet compl ete. At thi s stage the de bi t amo unts e ntered mi ght not equ al the credi t amounts e ntered. Sage 50 requires you to post the di fference to an account as soon as you cl ose a ledger record By choosi ng the Test Bal ance account for these di fferences, you can l ook at one account bal ance to see whe ther you have e ntered your data cor rectl y. If you have, the Test Account bal ance wi ll be zero. Wi thout thi s account, you must check al l amounts agai nst the manual Tri al Bal ance. Howe ver, eve n when the test account bal ance i s zero, i t i s i mportant to check the other amounts before fi ni shi ng the hi story because other errors may cancel each other out If the Test Account bal ance i s not zero, you know that there is at l east one i ncorrect amount.
You can choose any post abl e account for thi s purpose.
An al ternati ve method auto mati call y enters bal anci ng amounts i n the li nked Retai ned Earni ngs account when thi s opti on i s sel ected on the Gener al Li nked Accounts screen When all other openi ng bal ance amounts have been e ntered, the bal ance for Ret ai ned Earni ngs shoul d match the amount i n the Tri al Bal ance. In thi s approach, the actu al amounts shoul d stil l be checked for accuracy
16. When might you use the feature of allowing future transactions? Can you foresee any pro blems with allowing future tra nsactions? What controls might you want to place on the use of future transactions?
Future dati ng of trans acti ons mi ght be used to enter a seri es of transacti ons that are repeated, such as postdated che ques that are su bmi tted at a si ngl e poi nt i n time and use the s ame i nformati on for each trans acti on, except for che que number s By enteri ng the m al l when you wri te the cheque s, you will not forget to enter them when the d ate s occur, when you no l onger have i nvoi ces to remi nd you
All owi ng future dati ng of trans acti ons i n gener al may i ncrease the chance s of posting to a wrong d ate. Sage 50 has the buil t-i n control of not allowi ng dates i n a l ater fi scal period. It al so has setti ngs that warn if the trans acti on i s more than a certai n number of days i n the future and choosi ng a short future period will provi de more control
17. Why are adjusting entries required before closing the books?
Adjusti ng entri es are requi red to adhere to the accrual basi s of accounti ng and the matchi ng and recogni ti on pri nci pl es. Expenses must be matched to the same ti me period for whi ch they ear ned reve nue, regardl ess of the ti mi ng of the payment. Assets may have bee n prepai d and parti all y used. The part that has been used or has e xpi red must be recorded for the appropri ate period. Si mil arl y, unfi ni shed work must be recorded as reve nue for the period at year-end e ven though the payment for the work wil l be recei ved i n the next peri od.
18. Why it is important to print all reports and make backups before advancing the session dat e to the new fiscal year?
Pri nti ng/saving a copy of all reports ensures that you have compl ete fi nanci al records for i ncome tax reporti ng, for reporti ng to l enders and sharehol ders and to establi sh a compl ete audi t trail. If necessary, you can re- create the d ata se t fr om scratch for the new fiscal period because you have compl ete hi stori cal records avail abl e. The backup pro vi des a worki ng data se t for those cases whe n you need to add to the records for the prior peri od because entri es were omitted (although Sage 50 does all ow posti ng to prior fi scal periods) or i f you want to export reports for further anal ysi s You cannot mo ve the sessi on date backwar ds to a previ ous fi scal period The backup al so allows you to safel y cl ear data for the previ ous period. However, i f you entered transactions after maki ng the l atest backup, you must re-enter them i f you restore your backup.
19. Why might you want to clear historical data from your files? Why might you choose not to clear the data?
Cl eari ng data speed s up pr ocessi ng of the data, especi all y when the progr am i s ge nerati ng reports, savi ng the data set or maki ng backups It can al so si mpli fy reports For exampl e, the aged detai l reports will not i ncl ude i nvoi ces for the past peri od if they are pai d and cl eared.
If you choose not to cl ear dat a, you will be abl e to generate reports wi th more detail s from a si ngl e data set. Cl eared transacti ons canno t be adjusted or reversed automati call y.
20. If the fiscal end is June 30 and the session date is June 30, wh at date must you enter to advance the sessio n date?
To advance the sessi on date, you must enter Jul y 1 as the fi rst next d ate. After that, you can enter any d ate up to the end of the next fi scal peri od.
21. How do you close the books to end a fiscal period in Sage 50?
Starti ng a new fi scal peri od automati call y closes the bo oks You shoul d enter all adjusti ng entri es and make a backup before ad vanci ng the date to a ne w fi scal period because you cannot reve rse thi s step. If necessary, you can make entri es to the previ ous peri od if there are trans acti ons for whi ch you do not have the i nformati on before closi ng the books Refer al so to questi on 22
22. What changes are ma de to your accounting data when you advance the sessio n date into a new fiscal period?
When you begi n a new fi scal period, all data i s moved to the previ ous peri od category for purposes of report generati on Al l revenue and expe nse account bal ance s are reduced to zero by cl osi ng these accounts to the Current Ear ni ngs (Net Inco me) li nked account. The Current Earni ngs account i s then set to zero by cl osi ng i ts bal ance to the Retai ned Earni ngs li nked capi tal account.
23. How is closing your accounting books manually different from closing them in Sage 50?
Manu all y, you need to prepare and post e ach of these closi ng entri es for all revenue and e xpense accounts as well as the cl osi ng entry for current earni ngs. Thi s i nvo l ves maki ng the journal entri es and updati ng the l edger bal ance s
24. Why might you need to enter transactions fo r a previous fiscal period (after closing the books)? How would you do this?
At the be gi nning of a new f iscal perio d, you may not have al l the detail s you need for the previ ous period but you wil l still want to be abl e to enter current transactions. To do thi s, you must all ow transactions d ated before the fi scal start by u nchecking the opti on Do Not All ow Transacti ons Dated Before. The program preve nts you from enteri ng a journal date l ater than the fi scal end, so you must start a new fi scal peri od to conti nue enteri ng transacti ons. When you post tr ansac ti ons to a prior peri od, the program al ways requi res you to confi rm that you want to continue. Thi s i s another opportuni ty to check that your date s are correctly entered.
25. What are the reasons fo r entering a date for the setting Do Not Allow Transactions D ated Before…?
Thi s i s a control that hel ps you avoi d al teri ng hi stori cal data i n error. If an earli er date i s entered, the program does not all ow the trans acti on to be posted unl ess the option i s turned off. In thi s case, al though you will see the warni ng about usi ng the earli er date when you post the tr ansacti on, you will be all owed to compl ete the posting.
26. How are user preferenc e settings different from other company settings?
User preferences can be set for i ndi vi dual users for the way they want to work wi th the program. Other company setti ngs appl y to the dat a fil e the same way for all users. When you set up di fferent users who can access the d at a, each user can choose hi s/her own setti ngs. When they acce ss the data, they will see the setti ngs they entered i nste ad of the setti ngs that other users may have sel ected.
27. What is the default Home window? How can you change this default and when will you want to change it?
The defaul t home wi ndow is the one that appe ar s when you open a dat a fil e. The entry “thi s i s my defaul t page” appe ars besi de the modul e headi ng. When you open a di fferent modul e wi ndow, the entry changes to “make thi s my def aul t page .” Cli cki ng thi s entry changes the defaul t to the one currentl y open You can change the defaul t wi ndow at any ti me.
You may want to change the defaul t wi ndow to the one with i cons you use most frequentl y. For exampl e, when cre ati ng ne w company dat a files, the Company modul e i s needed for entering most se tti ngs. Howe ver, l ater, when enteri ng ve ndors or customers, you may prefer to use Payabl es or Recei vabl es as the defaul t.
28. How is the Current Earnings account different from other G eneral Ledger accounts in Sage 50?
The Current E arni ngs acco unt i s the onl y type X account You cannot change the account type for thi s account and you cannot po st di rectly to it, or choo se i t as the account for a journal transacti on Sage 50 automaticall y tracks re ve nues and e xpe nses i n thi s account to generate the net i ncome amount The account does not appe ar on the Tri al Bal ance but i t i s i ncl uded on the Bal ance Sheet On the Income Stateme nt, i t appe ar s as Net Income – the di fference between total reve nue and total expe nses
29. What should you do when you get the message “the accounts are not in logical order”? What effect will this situation have on your ability to work with the data file?
If accounts are not i n l ogi cal order, you will be unabl e to fi ni sh the hi story or vi ew reports Instead, when you try to do ei ther of these, you will see the message that “ accounts are not i n l ogi cal order.” You will al so see the message whe n you check the vali dity of your accounts (from the Accounts wi ndow tool i con or from the Home wi ndow Mai ntenance me nu). The message d escri bes the error so you can make the correcti on For exampl e, you may be i nformed that there i s a mi ssi ng subtotal after account 1080 After correcti ng the fi rst error, you may see the message agai n poi nti ng to a l ater error that requi res correction You must correct al l order errors before you can fi ni sh the hi story for the dat a set.
After fi ni shi ng the hi story, you may see the error message agai n after creati ng a new account wi th an i ncorrect account type. The error will not prevent you from maki ng journal entri es usi ng that accou nt, provi ded that you have sel ected a postabl e account type (group or subgroup), but will show when you try to di spl ay reports. At that point, you must make the correcti on to displ ay the report.
Good practi ce suggests that checki ng the vali di ty of accounts should be routi ne when creati ng a new include later tax tables and company Chart of Accounts and after addi ng ne w accounts dur i ng transaction e ntri es
30. What happens when you try to post a journal entry dated May 28, 2020, and your fiscal year is June 1, 2020, to May 31, 2021? How can you post this transaction?
You wi ll see a message that the date of the transacti ons must be between June 1, 2020 and May 31, 2019 If you want to all ow the trans action i n the previ ous fi scal year, you must fi rst change the System Settings.
Go to SetUp/Settings/Company/System and using the Do not allow transaction dated before option insert the date May 28, 2020.
31. If you enter 02-03-12 as the Fiscal Start date, what date will Sage 50 enter?
The date will either be 02-03-2012 or 02/03/2012.
32. What happens when you try to post a journal entry dated May 14 and your session da te is May 7?
You will see an error message saying that the tr ansacti on date exceeds the sessi on date.
33. Describe the difference in your data file, if any, between choosing Use Accounting Terms versus choosing Use Non-Accounting Terms.
If you use non-accounting term, the Payables Ledger will be named Vendors and Purchase in menus and so on.
34. Why is viewing modules a user preference rather than a system setting?
Companies require flexibility in their use of SAGE50 for their accounting needs. Viewing modules allows for that flexibility.
35. Describe the different ways to back up a data file. When would you use each of these methods? You can choose to save a working copy of the file you are working on under a different file name.
Choose the file menu and click Save A Copy to continue working with the original or Save As to open a new working copy of the file.
The second method is to create a BACKUP which creates a compressed file that must be restored before you can use it to enter transactions. The file extension will have .CAB added to its name.
36. What account ledger setting can you enter and modify in the Setup Guide window? Which ones can you not enter or modify in the Setup Guide window?
From the Setup Guide window you can set up Customers, Vendors, Employees and Accounts. You cannot set up the Company, Job Sites, Budgets and Tax rates.
37 What happens when you choose Automatic Backups as one of your settlings?
Sage 50 will back up your file whenever you close the file you are working on without prompting.
Review Cases
Case One
A friend who has extensive ex perienc e using Sage 50 advised the treasurer for Love It Again to number the accounts with gaps between successiv e accounts (1000, 1020, 1040, 1060, etc.).
a. Explain why this system may be helpful.
b. How is this system different from a manual accounting sy stem?
The mai n re ason for l eavi ng space s be tween account numbers i s to all ow for the inserti on of accounts at a l ater ti me, whil e mai ntai ni ng the ori gi nal l ogi cal sequence. In a manu al system, account nu mbers are l ess i mportant, so new accounts can be changed and i nserted more easil y. Any number of di gi ts may be used, i ncl udi ng hyphenated nu mbers. Order i s not i mportant al though i t can still i mprove the abili ty to organi ze and i nterpret the i nformati on, and transfer i t to other computer programs.
In the Pre mi um versi on, you can cre ate more room for new accounts by i ncre asi ng the number of di gi ts for account number s (Settings, Gener al (Accounts), Numberi ng screen). The change i n numberi ng will not be reversi bl e if you have cre at ed new accounts wi th 5 di gits For exampl e, i f you create an account wi th the number 10355, thi s account cannot be reduced to 4 di gits, but 10350 can be reduce d to 1035
Case Two
Some time after the accounts were c reated and journal transactions were ent ered, two new accounts were needed to represent the list of expenses more accurately. Unfo rtunately, to maintain the correct sequence of account s and to hav e the correct subgro up total, the new accounts had to be placed between the accounts th at were currently numbered 5050 and 5051. Discuss different ways that you could resolv e this problem. Does it make a difference which version of Sage 50 you are using?
(NOTE: For thi s case, students shoul d experi ment wi th a separ ate d ata fil e to di scover the li mi ts of the changes that can be made.)
You cannot change account numbers for accounts wi th journal entri es to them. If there are no entri es, renumber the accounts as requi red. Numbers fo r subgroup total accounts can be changed any time, so some fl exi bili ty may be provi ded i n thi s way.
Before maki ng other changes, pri nt al l reports rel ated to the fi scal period so that you have a compl ete audi t trai l of your acti ons. Make a backup copy of the dat a file.
Before changi ng account numbers you must ad vance the fi scal period twi ce, wi thout maki ng any journal entri es to the accounts you want to renumbe r. You can advance i t by one d ay at a time two times to move to the thi rd peri od. Change the Fi scal End date i n the Company Informati on screen to the same date as the Fi scal Start and then begi n a new ye ar. Repe at thi s ste p for the second year. At thi s poi nt, your fiscal date has been ad vanced by two days for the two periods and yo u can change account nu mbers. It i s i mportant to make a backup copy of the data fil es. Al ways document any acti on taken.
Remo vi ng accounts al so requi res ad vanci ng the fi scal peri od twi ce as descri bed abo ve i f the account has been used i n journal entri es The account must al so have a zero bal ance before you can remo ve i t so you must fi rst transfer the account bal ance to a ne w account Create a new account (or accounts) i n the same secti on (e.g Asset, Li ability) to hol d the account bal anc e (or bal ances) for the account(s) you need to del ete. You may need to create a set of temporary accounts to handl e the transi ti on Compl ete a General Journal entry to transfer the account bal ance from the account t o be removed to the ne w ac count You must make these entri es before advanci ng the fi scal date. You can now remove the account wi th a zero bal ance. Cre ate the necessary new accounts , l eavi ng ade qu ate room for addi ti onal i nserti ons thi s time Compl ete addi tional Gener al Journal entri es to transfer back the account bal ances to the appropri ate accounts i f necessary Pri nt the journal entri es to document your changes You c an remo ve the temporar y accounts after another two fi scal peri ods have p assed. Be sure to add a ful l expl anati on of all changes so that state ments wi th the
di fferent account numberi ng seque nces may be comp ared.
In the Pre mi um versi on, you can e nter the rel ated hi stori cal accounts detail s to li nk the accounts (Chapter 19) or change the account nu mberi ng to add an e xtra di gi t. Usi ng fi ve -di gi t account numbers i nste ad of fourdi gi t numbers pro vi des the gaps for extr a nu mbers.
You can see t hat a littl e foresi ght i n numberi ng account s i s preferabl e to maki ng ad justments l ater.
Case Three
At the end of August when the books were closed, $9,400 of the Donations Receivable amount was still outstanding. By the end of September, $9,000 of this amount was received and the remaining ($400) was written off at the time. Manually prepare the entries required for these transactions and the write-off. Would it make a difference if the $9,000 were received at the end of December? Why or why not?
08-31-20 Adjust Revenue: Donations
1155 Donations Receivable 9400
4100Revenue: Donations 9400
09-30-20 4100 Revenue : Donations 9000 5015 Uncollectible donations 400 1155 Donations Receivable 9400
It would not make a difference if the company yearend is December 31, 2020. The adjusting entry would have been processed in the current fiscal year. However, the year end is August 31 so the Income Statement for the previous fiscal year was over reported by $400.
Case Four
Data Used Binh’s Bins
Reorganize the accounts for Binh’s Bins, so that summary information about suppliers and customer will be more available in reports. (Hint: Consider how you can use Subgroup accounts.)
Case Five
Data Used Love It Again (Session Date Oct. 1, 2020, and October 15, 2020)
When the charity submits its GST/HST return, the liability for GST and HST charged on sales is recorded at 60 percent of the actual amount received (debit entries). This liability is reduced (credit entries) by the total GST/HST Paid on Purchases amount actually paid for operating expenses (ITCs). In addition, charities are eligible for a PSB rebate for other or non-ITC expenses: 50 percent of the GST and 82 percent of the Ontario PST portion of amounts paid. Tax returns are prepared by debiting GST and HST Charged on Sales and crediting GST and HST Paid on Purchases. Refunds are entered as an Accounts Receivable debit entry that can be cleared when the rebate is received. After remitting the GST/HST return and calculating the net refund, the tax accounts have remaining balances that must be cleared at the end of the year. These amounts are included as income for the charity.
Amounts reported on the Tax Report were based on the following information: Eligible GST and PST were paid on inventory purchases. The GST portion of HST is 5% and PST portion is 8%.
The input tax credit claim amount of $4,954.30 was based on total operating expenses ($38,110) from the final Income Statement minus the following line items that did not have HST applied:
Bank charges
Interest Expense
Wages
Employee Gifts
The net amount of $38 110, is multiplied by the HST rate of 13%.
When the books were closed, the HST report had not been submitted. As a charitable organization, Love It Again is owed a rebate for some of the taxes paid. All amounts should be included in the previous year’s Income Statement. Refer to page 106.
Prepare the journal entries for the following three memos:
Memo#12
Dated September 30/20
From Fischer: Submitted GST/HST return with the following amounts:
Remitted (debit entry) 60% of HST charged
Remitted (debit entry) 60% of GST charged 1
Claimed (credit entry) 100% of HST paid input tax credit 4
Claimed PSB Rebate (credit entry) 50% of eligible GST paid
Claimed PSB Rebate (credit entry) 82% of eligible PST paid
Net Refund amount (debit amount)
Create new account for the refund amount: 1285 GST/HST Rebate Receivable
09-30-20
Memo#13
Dated September 30/20
Clear all tax amounts. Print the Trial Balance and use the Trial Balance amounts to clear the remainders of the GST and HST account balances to a new revenue account 4150 Other Revenue.
To clear the tax accounts GST and HST Charged accounts will be debited (reduced) and income will be credited or increased by these amounts. GST and HST Paid accounts will be credited and income will be debited or reduced by these amounts.
Memo#14
Dated October 15/20
Deposit cheque #488129 for $278.14 from the Receiver General for HST rebate to bank account. 10-15-20