review hst recoverable – tax you paid for purchases related to business hst payable - tax you...
TRANSCRIPT
Review HST recoverable – tax you paid for
purchases related to business
HST payable - tax you charge customers
We analysed our transactions using HST recoverable & HST payable and put them into the general journal
Captain Panther Inc.General Journal
Page 1
Date Particulars
P.R.
Debit Credit
1 Nov 1 Bank 1 0 0 0 - 12 J. Stewart, Capital 1 0 0 0 - 23 To record the start of a Business 34 45 1 Equipment 3 0 0 - 56 HST Recoverable 3 9 - 67 Bank 3 3 9 - 7
8 To record the purchase of equipment for cash 8
9 9
10 3 Bank 2 8 2 50 10
11 Fees Earned 2 5 0 - 11
12 HST Payable 3 2 50 12
13 To record a service provided for cash
13
7.1 Posting
The process of transferring information from the journal to the ledger
What is POSTING?
No more T-accounts!!
This is what the General Ledger will now look like
Account: No:
Date Particulars P.R. Debit Credit DR CR
Balance
Captain Panther Inc.
General Journal
Page 1
Date Particulars P.R. Debit Credit
1 Nov 1 Bank 1 0 0 0 - 1
2 J. Stewart, Capital 1 0 0 0 - 2
3 To record the start of a Business 3
4 4
5 1 Equipment 3 0 0 - 5
6 HST Recoverable 3 9 - 6
7 Bank 3 3 9 - 7
8 To record the purchase of equipment for cash 8
9 9
10 3 Bank 2 8 2 50 10
11 Fees Earned 2 5 0 - 11
12 HST Payable 3 2 50 12
13 To record a service provided for cash 13
Let’s Try It!
Account: No:
Date Particulars P.R. Debit Credit DR CR
Balance
DR
DR
Bank 105
J1NOV 1
1
3
Opening Balance
Cheque Copy
Cash Sales
J1
J1
1 Account Name
2Account #3
Post-reference (journal page #)
4
DATE
1 0 00 - 1 0 00 -DR
5
Record the amount on
the appropriate
side
6
Record NEW
balance & indicate DR/CR
3 93 - 6 16 -
2 28 50 9 34 5050
Source Document
Name
A) record the journal page # (i.e. J1) in the LEDGER PR column
& B) record the ledger account # in the PR
column in the JOURNAL
Cross-referencing
Captain Panther Inc.General Journal
Page 1
Date Particulars P.R. Debit Credit 1 Nov 1 Bank 105 1 0 0 0 - 12 J. Stewart, Capital 1 0 0 0 - 23 To record the start of a Business 34 45 1 Equipment 3 0 0 - 56 HST Recoverable 3 9 - 67 Bank 3 3 9 - 7
8 To record the purchase of equipment for cash 8
9 9
10 3 Bank 2 8 2 50 10
11 Fees Earned 2 5 0 - 11
12 HST Payable 3 2 50 12
13 To record a service provided for cash
13
Complete the rest of the ledger entries on your page!
Calculate Remittance or Refund
HST Payable HST Recoverable
39.0032.50
Bank
32.50 39.0032.50 39.00
39.00 32.50
6.50
0 0
DR CRBank 6.50HST Payable 32.50 HST Recoverable 39.00
Journalize
Process of transferring final balance to a new page when existing page is complete or full
Record ‘FORWARD’ on last entry & on new page to show it comes from another location
Do exercise #3 on page 234 (t), 160 (w) to see it in action!
Forwarding Procedure:
The Accounting Cycle
Transaction occurs
Record to General Journal
Post to General Ledger
Trial Balance
Income StatementBalance
Sheet
Complete exercises 3 p. 234 (t), p. 160 (w) & ex. 2 p. 234 (t) p. 156-159 (w) Complete I/S & Balance sheet as well use pages 108 - 109 (w)
Homework: