How to deal with loss/damage of asset where no consideration is received? When I calculated the year end HST in Dec., I discovered that we had overpaid our HST installments by around $2,000. It's nice to see you here, @AngeliqueVal, Thanks for joining our forum. Steps : Debit or Credit ? Record Purchases under GST - Local, Interstate, and Fixed Assets Once you activate GST in your company, you can record the purchase of goods and services (inward supply) that attract GST using a purchase voucher. Accept the default General Journal No. 2370 HST charged on Sales = Total HST received (as credit) 2370 HST charged on Sale = Total HST payments (as debit) ... so I believe that I do need to do a journal entry (entries) to correct the opening balance of my HST accounts. Business assets include old furniture, office equipment and non-residential property. He purchased furniture for his office for Rs. Accept the default General Journal No. … 5,000 4. --> Increase in Assets Owner's Equity balance increases by $10,000. The recordation of a sales tax liability. Upon the sale of the property, the purchaser paid $10,000.00 to my company and my company took back a mortgage of $44,000.00. To record a $1,000 sale — a credit sale — the journal entry needs to show both the $1,000 increase in accounts receivable and the $1,000 increase in sales revenue. Journal entry for purchase of an Asset. where depreciation account will be debited and the respective fixed asset account will be credited. 01/2017 Central Tax (Rate) up to 25/01/2018 and rates after 25/01/2018, which are reduced … What will be the treatment on Sale of Capital Goods purchased after implementation of GST? In each case the fixed assets journal entries show the debit and credit account together with a brief narrative. 1,00,000 locally (intrastate) 2. Whether GST is levied on Sale of Capital Goods purchased in Pre GST era? Any help would be greatly appreciated Journal Entry Debit Cash Drawer 11500 Debit Accumulated Depreciation 12650 Credit Motor Vehicle Asset 20000 Credit Gain on disposal of asset (as other revenue, gain) 4150. It seems to me that using the Sale of an asset option does only half the job. Sales are a part of everyday business, they can either be made in cash or credit. (Discount allowed in the regular course of business) Sale of assets may produce profit and loss for the company. Cash balance increases by $10,000. This journal entry needs to record three events, which are: The recordation of a sale. The net effect is the profit (or loss) on sale of the asset. Recording asset purchases. The journal entry shows a $1,000 debit to accounts receivable and a $1,000 credit to sales revenue. I'm still trialing Xero and I'm up to the FAR and the subsequent sale of assets. Journal Entries for Fixed Asset Sale(vehicle) with a loan liability. Asset (but it has a negative balance) Decrease (because it has a negative balance) Credit Let's take a closer look. This example shows the recording of the purchase of Office Furniture on credit from Great Southern Office Supplies. Old Vehicle As a first step, let's take a look at the old car. What entry is made when selling a fixed asset? Repeat step 1 for the Sales & Receivables Setup page. Then I do a journal to transfer the cost of the asset and the accumulated depreciation to the Sale of Asset Account. A capital asset is not intended for sale in the ordinary course of business. Do I need to a count for the GST onto my journal entry or will I just include it in the BAS. When a fixed asset or plant asset is sold, there are several things that must take place:. As this is an asset account it will have a debit entry. The fixed asset's depreciation expense must be recorded up to the date of the sale; The fixed asset's cost and the updated accumulated depreciation must be removed; The cash received must be recorded Generally, you have to account for GST (i.e. GST and the disposal of capital assets. From the example above the journal entry will look like this: The above example is from Xero, but all accounting packages have journal entries. Results of Journal Entry. It is not a Journal Entry - Penalties and Interest payable to the CRA should be recorded as a bill from Receiver General and posted to a Penalties/Interest Expense type account. A sales journal entry records the revenue generated by the sale of goods or services. Is to abide by the matching principle for depreciation Expense is to abide by the matching principle will I include. Asset option does only half the job 'm missing something Xero completely ignores in! 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