OA 2431
Computerized Accounting
Chapter 2, Day 1
GST (General Sales Tax)
Introduction:
GST on Sales
$300
Less GST on Purchases $200
GST Payable to Rec. Gen. $100
Regular Method:
A/R
535
Sales
500
GST on Sales
35
Sold service to customer for $500, plus $35 GST.
Supplies
300
GST on Purchases
21
A/P
321
Purchases supplies for $300, plus $21 GST.
GST on Sales
35
GST on Purchases
21
Cash
14
Record paying GST to Rec. Gen., and "0"ing the GST accts.
OA 2431
Computerized Accounting
Chapter 2, Day 2
GST and Provincial Sales Taxes
Introduction:
PST (Provincial Sales Tax)
- Record PST on Purchases
Added to cost of item purchased.
- Record PST on Sales
$150
- Total PST on Sales is submitted to Provincial Treasurer
$150 submitted to Receiver General
A/R
575
Sales
500
GST on Sales (7%)
35
PST (8%)
40
Sold service to customer for $500, plus $35 GST.
Note: $40 PST is recorded so it can be remitted to the Prov. Treasurer.
Supplies
324
GST on Purchases
21
A/P
345
Note: PST is added to the cost of the item.
PST Payable
40
Cash
40
Note: Total PST collected is remitted to the Provincial Treasurer.
GST on Sales
35
GST on Purchases
21
Cash
14
Record paying GST to Rec. Gen., and "0"ing the GST accts.
(GST is remitted as shown before.)
Name: ________________
GST Journal Entries – 1
OA 2431 ACCPAC Simply Accounting
Complete the Journals:
Accounts Receivable (A/R)--when you sell something and will be paid later. Then you own the
customer’s promise to pay the bill in the future, an Asset.
Accounts Payable (A/P)--when you buy something and don’t pay for it right away. Then you promise to
give up an asset in the future, a Liability.
Assets:
Cash
A/R
Liabilities:
A/P
GST on Sales
GST on Purchases
Owner’s Equity:
Sales
Auto Expense
Telephone Expense
All transactions involve 7% GST.
Debits come before Credits when making Journal Entries. See the sample.
Paid $500 for gas and minor auto repairs, plus taxes.
Auto Expense (Note, Debit Entries go first and are left justified.)
GST on Purchases
Cash (Note, Credit entries are indented.)
500
35
535
(Note, indent.)
(Note, imaginary
“T” account!)
Sold $200 service plus taxes, received cheque.
Received bill for telephone service, $300, plus taxes.
Paid above telephone bill. (Careful: you are paying the bill—telephone expense is not affected!
Also, is GST affected? No, it isn’t, you just paid the bill!)
(From now on supply you own imaginary “T” account)
Name: ________________
GST Journal Entries – 2
OA 2431 ACCPAC Simply Accounting
Complete the Journals:
Make sure you can complete these questions without referring to the key.
Drawings. When the boss withdraws assets (cash usually) from the business and the reason isn’t related
to earning revenue.
Assets:
Cash
A/R
Supplies
Liabilities:
A/P
GST on Sales
GST on Purchases
PST
Owner’s Equity:
Drawings
Sales
Auto Expense
All transactions involve 7% GST.
Boss handed in receipt for shoeshine, paid $5.00 plus.35 for GST. Careful! The firm pays back the
owner for GST but, on Drawings, does not record the taxes separately.
Boss handed in receipts for gasoline used on sales calls, paid $100, plus GST $7.
Bought supplies on account, $300 plus 21 GST.
Sold services for $1,000, plus $70 GST. Received $600 cash. (Balance is A/R)
Name: ________________
GST Journal Entries – 3
OA 2431 ACCPAC Simply Accounting
Complete the Journals:
Make sure you can complete these questions without referring to the key.
Assets:
Cash
A/R
Supplies
Liabilities:
A/P
GST on Sales
GST on Purchases
Owner’s Equity:
Sales
All transactions involve 7% GST.
Sold services worth $800 plus $56 GST, for cash.
Sold services for $800 plus $56 GST, received $500 in cash.
Received invoice for office supplies, $200 plus GST $14.
Paid $100 on the above invoice. (Is GST affected? No, it isn’t, you just paid the bill!)
Name: ________________
GST Journal Entries – 4
OA 2431 ACCPAC Simply Accounting
Complete the Journals:
Assets:
Cash
A/R
Automobile
Liabilities:
A/P
Bank Loan
GST on Sales
GST on Purchases
Owner’s Equity:
Sales
Auto Expense
Entertainment Expense
Postage Expense
All transactions involve 7% GST.
Sold Consulting Service for $1,000 plus GST $70, on account.
Bought car for $10,000 plus $700 GST, paid $7,000 cash, borrowed the rest.
Paid $1,000 on the loan from the previous transaction. (Are the car or taxes affected? Nope!)
Name: ________________
GST & PST Journal Entries – 5
OA 2431 ACCPAC Simply Accounting
Complete the Journals:
Accounts Receivable (A/R)--when you sell something and will be paid later. Then you own the
customer’s promise to pay the bill in the future, an Asset.
Accounts Payable (A/P)--when you buy something and don’t pay for it right away. Then you promise to
give up an asset in the future, a Liability.
Assets:
Cash
A/R
Liabilities:
A/P
GST on Sales
GST on Purchases
PST
Owner’s Equity:
Sales
Auto Expense
Telephone Expense
All transactions involve 7% GST and 8% PST.
Debits come before Credits when making Journal Entries. See the sample.
Paid $500 for gas and minor auto repairs, plus taxes. GST = $35, PST = $40
Auto Expense (Note, Debit Entries go first and are left justified.)
GST on Purchases
Cash (Note, Credit entries are indented.)
540
35
575
Sold $200 service plus taxes, received cheque. GST = $14, PST = $16
Received bill for telephone service, $300, plus taxes. GST = $21, PST = $24
Paid above telephone bill.
(From now on supply you own imaginary “T” account)
(Note, indent.)
(Note, imaginary
“T” account!)
Name: ________________
GST & PST Journal Entries – 6
OA 2431 ACCPAC Simply Accounting
Complete the Journals:
Make sure you can complete these questions without referring to the key.
Drawings. When the boss withdraws assets (cash usually) from the business and the reason isn’t related
to earning revenue.
Assets:
Cash
A/R
Supplies
Liabilities:
A/P
GST on Sales
GST on Purchases
PST
Owner’s Equity:
Drawings
Sales
Auto Expense
All transactions involve 7% GST and 8% PST.
Boss handed in receipt for shoeshine, paid $5.00 plus.35 for GST and .40 for PST. Careful! The firm
pays back the owner for GST and PST but, on Drawings, does not record the taxes separately.
Boss handed in receipts for gasoline used on sales calls, paid $100, plus GST $7, PST $8
Bought supplies on account, $300 plus 21 GST and 24 PST.
Sold services for $1,000, plus $70 GST and $80 PST. Received $600 cash. (Balance is A/R)
Name: ________________
GST & PST Journal Entries – 7
OA 2431 ACCPAC Simply Accounting
Complete the Journals:
Make sure you can complete these questions without referring to the key.
Assets:
Cash
A/R
Supplies
Liabilities:
A/P
GST on Sales
GST on Purchases
PST
Owner’s Equity:
Sales
All transactions involve 7% GST and 8% PST.
Sold services worth $800 plus $56 GST and $64 PST, for cash.
Sold services for $800 plus $56 GST and $64 PST, received $500 in cash.
Received invoice for office supplies, $200 plus GST $14 and PST $16.
Paid $100 on the above invoice. (Is GST affected? No, it isn’t, you just paid the bill!)
Name: ________________
GST & PST Journal Entries – 8
OA 2431 ACCPAC Simply Accounting
Complete the Journals:
Make sure you can complete these questions without referring to the key.
Assets:
Cash
A/R
Automobile
Liabilities:
A/P
Bank Loan
GST on Sales
GST on Purchases
PST
Owner’s Equity:
Sales
Auto Expense
Entertainment Expense
Postage Expense
All transactions involve 7% GST and 8% PST.
Sold Consulting Service for $1,000 plus GST $70 and PST $80, on account.
Bought car for $10,000 plus $700 GST and $800 PST, paid $7,000 cash, borrowed the rest.
Paid $1,000 on the loan from the previous transaction. (Are the car or taxes affected? Nope!)