Simple accounting questions... accounting, Simple, questions

cyberstudio

Q1.

If I pay GST on something that I intend to claim ITC later, is that accounted for under an expense, so that when I actually receive the ITC it is recorded as income?

Or as an account receivables?

Q2.

Small capital assets, I think under 200, can be depreciated 100% in the same year if my understanding is correct.

How do people usually account for them? Create a sub-account under "capital assets" and depreciate them like other capital assets? Or just account for them under operating expenses?

Your help is greatly appreciated.

cyberstudio

I see, thank you very much for your help! It clears up my question now.

We are >90% exports so we always receive a cheque from the government. I guess we will do GST on the receivable side, then?

Later, I found out the 100% depreciation applies to cheap hand tools under some "class 12", and still subject to the half-year rule. I am the boss and I have no preference one way or another. Our accountant told us these are still fixed assets, and I would like to journal them the way they want. But if I have a fixed asset worth only $10, do I bother to depreciate $1 the first year and $1.8 the second? There must exist some minimum value for something to be a fixed asset, right?