265 G.S.T./P.S.T./H.S.T. Receivable

Assets

Receivables

Synopsis

Account 265 is established to record the amount of G.S.T./P.S.T./H.S.T. recoverable from purchases of items for resale or the purchase of other qualifying items.

Debits

Credits

  1. The amount of G.S.T./P.S.T./H.S.T. recoverable from a prior month

  1. The amount of G.S.T./P.S.T./H.S.T. refunds received

 

Comments

A debit balance represents unpaid G.S.T./P.S.T./H.S.T. owed to the dealership.

Note:

At the end of each month a G.S.T./P.S.T./H.S.T. return should be prepared and reconciled with Account 315, G.S.T./P.S.T./H.S.T. Payable.  If Account 315 shows a debit balance, then the amount should be transferred to Account 265, G.S.T./P.S.T./H.S.T. Receivable.  Please refer to Account 315, G.S.T./P.S.T./H.S.T. Payable for additional details.