Comments on: GST receivable is an asset. But how does a firm have *control* over the GST receivable account? http://FutureFirm.com/blog/gst-receivable-is-an-asset-but-how-does-a-firm-have-control-over-the-gst-receivable-account/ FutureFirm.com Tue, 22 May 2012 12:44:09 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: hubertxiv http://FutureFirm.com/blog/gst-receivable-is-an-asset-but-how-does-a-firm-have-control-over-the-gst-receivable-account/comment-page-1/#comment-129 hubertxiv Wed, 07 Oct 2009 12:44:40 +0000 http://FutureFirm.com/blog/gst-receivable-is-an-asset-but-how-does-a-firm-have-control-over-the-gst-receivable-account/#comment-129 If you are preparing a Balance Sheet at year end, the amount of GST on 'creditors' is perhaps shown as an asset (or at least as a credit) and the amount payable on Debtors is shown as a liability. I believe it is preferable to show the actual net amount in the accounts. If you are working on a 'credit' basis then I believe that a net GST should or could be shown as a net figure. On a 'cash basis' of course, the GST would not feature in a Balance Sheet If you are preparing a Balance Sheet at year end, the amount of GST on ‘creditors’ is perhaps shown as an asset (or at least as a credit) and the amount payable on Debtors is shown as a liability. I believe it is preferable to show the actual net amount in the accounts.

If you are working on a ‘credit’ basis then I believe that a net GST should or could be shown as a net figure. On a ‘cash basis’ of course, the GST would not feature in a Balance Sheet

]]> By: miss schlonky http://FutureFirm.com/blog/gst-receivable-is-an-asset-but-how-does-a-firm-have-control-over-the-gst-receivable-account/comment-page-1/#comment-128 miss schlonky Tue, 06 Oct 2009 05:03:36 +0000 http://FutureFirm.com/blog/gst-receivable-is-an-asset-but-how-does-a-firm-have-control-over-the-gst-receivable-account/#comment-128 It's not an asset. Who told you that? GST collected/receivable is a liability, not a balance sheet asset account. The only assets are the short term equivalent portions of cash in the bank and creditors to the liability of GST collected. GST paid is a contra liability, not an asset either. It’s not an asset. Who told you that? GST collected/receivable is a liability, not a balance sheet asset account. The only assets are the short term equivalent portions of cash in the bank and creditors to the liability of GST collected. GST paid is a contra liability, not an asset either.

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