GST Payable, GST Recoverable, and PST Payable?

Question

Under which section do these accounts go on the balance sheet? I remember doing something with like

Less: GST Payable
Add: GST Recoverable

or something like that but I completely forget!

thanks.

Answer 1

GST and PST Payable accounts are liability accounts. GST recoverable a/c is an asset account.
When you make a sale of $100, it attracts GST of, say, 6% and PST of, say, 8% so your entry:
Dr A/cs receivable $114
Cr Sales $100
Cr GST payable $6
Cr PST payable $8

Presumably, GST and PST are payable to some tax authority ( I don't live in Canada)

When you make a purchase, you'd:
Dr Purchases/Inventory $100
Dr GST recoverable $6
Cr A/cs payable $106

(In the majority of cases the PST is not chargeable from your vendor to you on goods for resale to your client.)

So to determine how much to pay the tax man, you take your GST payable and less your GST recoverable and you pay him the difference, together with the PST payable.

Answer 2

Gst Payable