Adjusting Journal Entries With HST
(Canada)
Posting Year-End Adjusting Entries in QuickBooks
I am trying to enter my adjusting journal entries from my accountant.
One of them consists of five lines:
1 accounts receivable
2 hst on purchases
3 hst on sales
4 hst on sales and
5 non-deductable interest.
I can't figure out how to do this in my general journal. Can you help?
Adjusting entries from the accountant are entered using the General Journal Entry window found under the "Company" drop down menu.
To enter accounts receivable, you will need an actual customer name ... and you can only enter one AR per journal entry. This restriction is to keep the subledger in balance with the general ledger. If you don't have the customer name(s), you will need to ask the accountant for the detailed list of what s/he is adjusting.
For the HST adjustments, you will need to select an associated tax line on the GST/HST report ... there should be a purchase adjustment item and a sales adjustment item in your drop down lists.
For non-deductible interest, create a sub-account under your existing Interest Expense account titled "Non-Deductible Interest" to post this entry to.
Often times, especially with accounts receivable/payable, it is easier to book the journal entry using the QuickBooks forms rather than a general journal entry.
Just book a "net zero" on the appropriate form. Make your reference something like YEA12 where YEA stands for "year-end adjustment".
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