So here's the question. I am doing an MYOB Assignment, and I have to record this document, the situation is that there's this company, named Rangitoto Adventue Ltd, which is a tourism company and Kelly Kahurangi, the owner, spends most of her time promoting a luxury charter vessel called Risk and Reward. Many o her customers turn up on the day without suitable clothing and other necessities and Kelly saw a business opportunity and started another company called Rangitoto Apparel Ltd together with Julia Wong.

Anyhow, the thing is that Kelly would hold 7,500 shares and Julia would hold 2,500, each subscribing for their shares in cash.

Ok I know how to handle the shares bit in MYOB because you just go to receive cash, but there's this document where Rangitoto Apparel receives an invoice from Rangititoto Adventures for 225 (Already includes GST) for registartion charges paid on behalf of Rangitito Apparel. (I am Vailimi, the accounting assistant and I need to setup MYOB for the company as you have guessed) And I think I need to go to enter journal entry and enter the following:

Debit Registration Charge Asset (or something similar) 200
Debit GST 25
Credit Equity 225

Because they said to record it as an capital expense not operating expense


Or is that not right I have tried now looking for feedback. Thanks so much@

Bump!

Let's make this a bit simpler.

Rangitoto Adventue Ltd = We will call this the Tourist Company
Rangitoto Apparel Ltd = We will call this the Clothing Company

So from my understanding, the Tourist Company paid all the fees that the Clothing Company should have to set up a legal corporation in Canada.

Therefore…

The JE for the clothing company (Rangitoto Apparel Ltd) will be:

Debit Registration Charge Asset 200
Credit Accounts Payable (remember this is a bill you are getting) 225

Is the GST on this refundable or not? If it is, the corresponging Debit entry to finish this off would be 25 to GST Refundable. If it isn't, then you would just add the 25 to the asset account.

When Kelly and Julia donated money for the shears, that JE was:
Dr. Cash
Cr. Common Shares/Equity

When you pay this bill, that JE will be:
Dr. AP
Cr. Cash