Below is a general journal entry for payment of the account, Brown's Birthday hire. I have attracted the discount for payment made in under 30 days. how do I record the GST component of the discount?

The answer I just received for the above question says to dr GST paid 2.50 and leave everything else as is but this means my debits and credits are not equal -

dr 550 + dr 2.50 = 552.50 and cr 522.50 + cr 27.50 = 550.00. how to ensure my debits and credits are equal while still recognising the GST component of the discount?

Accounts payable dr 550.00

Bank cr 522.50

Discount received cr 27.50

Narration - Paid invoice #321 in full to Browns Birthday Hire

Expert Answer