x Want to participate? Join the group to interact
Erzsi_I
Related
Recommended

Sage Tip: CRA tax refund entry

1 minute read time.

Need an account to post your tax refund to?

Do you have an account in your Chart of Accounts called Corporate Income Tax Payable, probably in the Liabilities section? If you open the sample company you can use account 21600 for Corporate Taxes payable as an example for what to create in your live company database.

 

Your accountant should have given you a "year end adjusting entry" with an amount to be posted to Corporate Taxes Payable. 

 Once you receive your income tax refund, you would book the following entry to clear your payable account:

  •  Dr. (increase) Cash in Bank ( a current asset on your balance sheet)
  •  Cr. (increase) Corporate Income Tax Payable (current liability on your balance sheet)
  •  Cr. (increase) Interest Income (income account on your income statement) 

Other Resources:

Lisez ce blog en français

Was this blog useful? Kindly leave us a like and rating on the right-hand side of this page.

Parents

  • Should Income Tax payable has to have a zero balance in the Balance Sheet? I have to file my year end T2 now, how to make the correction now if this is not correct, I "  dr. 1060 bank account and cr. 2160 Income tax payable but now I have a cr. balance under my Income Tax payable in my Balance Sheet. Should Income tax payable be .00 in the balance sheet? Please reply as soon as you can because I have to file T2 now. Thanks so much 

Comment

  • Should Income Tax payable has to have a zero balance in the Balance Sheet? I have to file my year end T2 now, how to make the correction now if this is not correct, I "  dr. 1060 bank account and cr. 2160 Income tax payable but now I have a cr. balance under my Income Tax payable in my Balance Sheet. Should Income tax payable be .00 in the balance sheet? Please reply as soon as you can because I have to file T2 now. Thanks so much 

Children
No Data
Generic Content
Generic Content

*Community Hub is the new name for Sage City