BAS Payment relating to prior Fin Year - matching ledger to bank account.

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I have followed previous discussion on this topic including the use of the liability account GST Payable ATO Integrated Client. I still dont understand the the work around journal because of the need to both debit and credit what? Without a solution ( that does not include reopening the prior financials ) there will be an ongoing mismatch between the ledger bank balance and the operating account. This is not an acceptable result.
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Simon Whitfort

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Posted 1 year ago

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Lynda Chater

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Hi Simon

I am unsure of your query or why your actual bank would not agree to your ledger.
After reconciling your BAS if you do a journal entry -

Dr - GST Collected
Cr - GST Paid
DR - PAYG Withholding
DR or CR depending on result ATO Integrated Credit

This journal should clear your GST figures in your ledger to the ATO Integrated client account then when the cheque is paid or receipt from the ATO comes through the bank account this it is then is allocated to ATO Integrated client account which clears the account.

Hope this helps