Income

6.4.2 Income: Other Income Receipts – GST Refunds

When you complete entry of your BAS return, any refund due to you should be debited (via journal entry) to a receivable account (e.g. 1-1090 Tax Refund Due), clearly marked as a BAS Refund Due.

When you receive notification that the refund has been credited to your bank account, make a Journal Entry as shown to DEBIT the bank to which the refund was paid, and CREDIT the amount of refund to 1-1090 Tax Refund Due.

GST refund received

In the event that the amount received varies slightly from the amount originally claimed:

  • Debit the actual amount received to the Bank Account
  • Credit the actual amount DUE to 1-1090
  • Credit or Debit the difference to 5-1190 Overs and Unders

When the Debits and Credits are equal and ”Out of Balance” shows 0.00, click ADD JOURNAL ENTRY to save.


NOTE:  If there is a substantial discrepancy between the amount claimed and the amount received, you will need to investigate the reason for the discrepancy and make adjusting journal entries accordingly.


 


about the author:

Lorraine Cobcroft

With a background in accounting and financial management, followed by two decades writing software documentation, Lorraine joined the Mclowd team in mid-2016 and is enjoying working with a dynamic team to enhance an innovative product that has the potential to revolutionize the way Australians manage their retirement funding.
Lorraine is also an accomplished business writer, ghost-writer, novelist and short-story writer and poet.

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