GST collected on sales is accumulated in a liability account called GST collections and GST paid on purchases is accumulated in an account with a debit balance called GST outlays. What type of account is GST outlays?

Question

Quizplus · Accepted Answer

GST outlays represents an amount owed to the government, so it is a liability account with a debit balance, or a contra liability account.

GST Collected on Sales Is Accumulated in a Liability Account