How journal entries affect the tax return
Journal entries are used to move amounts from one general ledger account to another and do not affect the tax return. However, there may be situations where you need to include taxes on your journal entries and report them on your tax return. You can do this by selecting Include on tax return for a line when creating a journal entry.
The table below shows how the entries marked for inclusion affect the tax return:
|Ledger Account||Credit||Debit||CRA (GST/HST)||British Columbia (PST)||Manitoba (PST)||Saskatchewan (PST)||Quebec (QST)||Combined (GST/HST-QST) Quebec Only|
|Revenue (all)||Increases||Decreases||Box 101||Box A||N/A||Box A||Box 201||Box 101|
|GST/HST Collected and Collectible||Increases||Decreases||Box 103||N/A||N/A||N/A||N/A||Box 103|
|GST/HST Input Tax Credits||Decreases||Increases||Box 106||N/A||N/A||N/A||N/A||Box 106|
|BC PST Collectible on Sales||Increases||Decreases||N/A||Box B||N/A||N/A||N/A||N/A|
|SK PST Collectible on Sales||Increases||Decreases||N/A||N/A||N/A||Box B||N/A||N/A|
|MB PST Collectible on Sales||Increases||Decreases||N/A||N/A||Box 1||N/A||N/A||N/A|
|QST Collected and Collectible||Increases||Decreases||N/A||N/A||N/A||N/A||Box 203||Box 203|
|QST Input Tax Refund||Decreases||Increases||N/A||N/A||N/A||N/A||Box 206||Box 206|
Amounts for the payable accounts below cannot be selected for inclusion on the tax return. Taxes for these accounts must be calculated from amounts on the return.
- Federal Income Tax