I don't see a need to set up the Receiver General as a customer. You can record the entry with a debit to the bank and a credit to a revenue account each time you receive a payment. I have set up the accounts for each of the subsidies, TWSE and CEWS under the Other Revenue as you suggested. The exact handling of these accounts may still be under question as their has been an indication that at least one of them will have to be reported on the T4 forms at the end of 2020. Where and how, we don't know.

Thanks so very much, that makes total sense, and what I have just done. I really appreciate your help with this.

I have also set-up the CEWS account under Other Revenue as suggested and recorded the amounts received as of the actual dates of payment into the bank account. However, I have just applied for the subsidy for Period 9 (October 25 - November 21, 2020) and won't receive the actual payment until January 2021, so I am wondering how I can post this amount received (and the amount for Period 10 once received) so that it is properly recorded as income for 2020 and so my bank reconciliation is still correct. Would this need to be done with an invoice, as mentioned in the original post or do you have any suggestions for this issue?

The following CRA CEWS FAQ alerted me to this issue:

"25. Is the wage subsidy considered taxable income?

Yes. The wage subsidy received by an eligible employer is considered assistance received from a government immediately before the end of the claim period to which it relates. The amount is taxable and is to be included in computing the income of the eligible employer. The eligible remuneration paid to the employee will be a deductible expense for the employer.

However, the wage subsidy received by the eligible employer will not be included in the calculation of its qualifying revenue."

Any suggestions would be greatly appreciated!

Process the claim and at the same time make an entry to debit the bank and credit the appropriate revenue account. The entry date should be December. When you do your bank reconciliation this deposit will remain as outstanding. When doing the reconciliation for January the deposit will still be available to match with the January deposit in the bank. This situation is the same only reversed as a cheque written at the end of the month that does not clear until the next month a most common situation for accrual accounting.