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What is the correct journal entry when entering interest/penalty on GST/HST returns?

Forum|Forum|7 years ago
March 12, 2019
11 replies
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QuickBooks Desktop

Best answer by NEVER

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. The transaction is unrelated to GST remittances and must not affect the GST Payable or GST Expense Accounts.

R

rgayleAuthor

Thank you. So then should I write a cheque paid to CRA and charge an Interest/Penalty expense account?

N

NEVERAnswer

Level 1

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. The transaction is unrelated to GST remittances and must not affect the GST Payable or GST Expense Accounts.

R

rgayleAuthor

So should I then write a cheque payable to C.R.A and charge the interest/penalty expense account?

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