ALL ABOUT TAXES!

Sales tax is referred to tax dollars being generated from business transactions.

There are four principles of taxation:
1) Tax dollars are collected by the buyer of the goods.
2) The tax dollars are collected and recorded in a separate liability account.
3) The tax dollars belong to the government.
4) The seller sends he tax dollars to the government at appointed times.

Retail sales tax also known as Provincial Sales Tax (PST) is charged by the provincial governments. Tax is usually calculated as a percentage. In this case, British Colombia has PST of 7%. Goods and Services Tax (GST) was introduced in 1991. The tax dollars is charged by the federal government. The GST in British Colombia currently is 5%.

General Journal!

A general journal usually contains the date, particulars (in this case the debit and credit account entries) and the debit & credit amount. Also contains a brief description after the entries has been listed. Source documents prove the transactions that has been made and it will be recorded in the general journal first, which is why the general journal is also called the book of original entries.