Issue
The fund received a prepaid rental income of $1,100 on 29 June 2019. The income is for the period of July-2019. How do I take up the Income as a Sundry Creditor, at the same time, take up GST on Cash-basis?
Resolution
To resolve this issue:
Step 1: Create Custom Holding Account to record the Sundry Creditor
Step 2: Add value into the Sundry Creditor account
Step 3: Take up GST Received
Step 4: Match Transactions
Step 5: Match the $1,000 remaining in Custom Holding Account to Rental Income
Create Custom Holding Account to record the Sundry Creditor
Navigate to Fund Level > Investments > Custom Holding Account
- Create a Custom Holding Account
Example
Add value into the Sundry Creditor account
Navigate to Fund Level > Transactions > Browse Bank Statements
- Select the Rent In Advance from the drop-down list at Bank Account
- Add a Cash Out transaction on 29/6/2019 with the amount of $1,100
- Add a Cash In transaction on 29/06/2019 with the amount of $100
Take up GST Received
Navigate to Fund Level > Transactions > Investment Sell > Listed Security Disposal > GST Received
- Select Rent in Advance as the Custom Holding Account
- Enter the date as at when Cash received
- Enter $100 into the Claimable GST field
- Enter $1,100 into the Gross Transaction Amount field (this will not shown on Statement of Financial Position or Operating Statement)
- Click on Submit
Match Transactions
Navigate to Fund Level > Transactions > Match Transactions
- Match the $1,100 Cash out from the Rent in Advance Custom Holding Account to the $1,100 Cash In to the bank account
- Match the $100 Cash In from the Rent in Advance Custom Holding Account to the $100 GST Received event
Match the $1,000 remaining in Custom Holding Account to Rental Income
This is for the following Financial Year when Rent Income is realised for Accounting purposes.
Navigate to Fund Level > Transactions > Browse Bank Statements
- Select the Rent In Advance from the drop-down list to Bank Account
- Add a Cash In transaction with the amount of $1,000 as at the Date of the Rental Income
Navigate to Fund Level > Transactions > Fund Income > Rental Statement
- Enter $1,000 to Gross Rent Including GST
- Clear the amount in the GST on Rent field
- Match off the Cash In transaction to the business event