This document contains a 25 question multiple choice test on accounting for GST. It includes sample journal entries related to GST for purchases, sales, payments and receipts. It also provides additional context for several questions involving GST clearing account balances and transactions over a period of time. The test is intended to assess understanding of key concepts around recording and reporting GST for a trading business.

1. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 8 – ACCOUNTING FOR GST
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 1
Chapter 8 Test – Accounting for GST
Name ___________________________________________
Circle the correct response for each question:
1. (a) (b) (c) (d)
2. (a) (b) (c) (d)
3. (a) (b) (c) (d)
4. (a) (b) (c) (d)
5. (a) (b) (c) (d)
6. (a) (b) (c) (d)
7. (a) (b) (c) (d)
8. (a) (b) (c) (d)
9. (a) (b) (c) (d)
10. (a) (b) (c) (d)
11. (a) (b) (c) (d)
12. (a) (b) (c) (d)
13. (a) (b) (c) (d)
14. (a) (b) (c) (d)
15. (a) (b) (c) (d)
16. (a) (b) (c) (d)
17. (a) (b) (c) (d)
18. (a) (b) (c) (d)
19. (a) (b) (c) (d)
20. (a) (b) (c) (d)
21. (a) (b) (c) (d)
22. (a) (b) (c) (d)
23. (a) (b) (c) (d)
24. (a) (b) (c) (d)
25. (a) (b) (c) (d)
Total /25 marks

2. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 8 – ACCOUNTING FOR GST
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 2
Chapter 8 Test – Accounting for GST
1. Which of the following transactions does not have GST?
a) Purchases of stock on credit
b) Receipts collected from debtors
c) Payment of rent
d) Advertising put on account
2. Which of the following transactions will have GST?
a) Payment of wages
b) Interest received
c) Rent paid with credit
d) Payments made to creditors
3. The document used to verify transactions involving GST is:
a) Receipt
b) Cheque butt
c) Invoice
d) All of these documents verify GST transactions
4. A business purchased stock for $330 plus GST for cash on 31 March. The entry that will be made
in the GST Clearing ledger will be:
a)
GST Clearing [L]
31 Mar Debtors control 33
b)
GST Clearing [L]
31 Mar Cash at bank 33
c)
GST Clearing [L]
31 Mar Cash at bank 30
d)
GST Clearing [L]
31 Mar Cash at bank 30

3. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 8 – ACCOUNTING FOR GST
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 3
5. On 31 January a business made a credit sale of $660 including GST (cost price of the stock sold
was $310). The entry that will be made in the GST Clearing ledger will be:
a)
GST Clearing [L]
31 Jan Debtors control 66
b)
GST Clearing [L]
31 Jan Debtors 60
c)
GST Clearing [L]
31 Jan Debtors control 66
d)
GST Clearing [L]
31 Jan Debtors control 60
6. A firm paying its rent of $700 plus GST of $70 on 28 February will make which of the following
entries in the GST Clearing ledger?
a)
GST Clearing [L]
28 Feb Cash at bank 70
b)
GST Clearing [L]
28 Feb Debtors control 70
c)
GST Clearing [L]
28 Feb Cash at bank 70
d)
GST Clearing [L]
28 Feb Cash at bank 77

4. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 8 – ACCOUNTING FOR GST
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 4
7. A business recorded GST payments of $313 during the period and collected $194 of GST. What
is the balance of the firm’s GST Clearing account at the end of the period?
a) DEBIT $507
b) CREDIT $119
c) DEBIT $119
d) CREDIT $507
8. A business collected $150 in GST on a cash sale from a customer. The impact of the GST in this
transaction on the Balance Sheet of the firm is:
Assets Liabilities Owner’s Equity
a) No effect No effect No effect
b) Increase No effect Increase
c) Decrease Increase No effect
d) Increase Increase No effect
9. A firm paid $90 of GST on its monthly electricity bill. The impact of the GST in this transaction on
the Income Statement of the firm is:
Revenues Expenses Net Profit
a) No effect No effect No effect
b) No effect Increase Decrease
c) Increase No effect Increase
d) No effect Decrease Decrease
At the end of August the balance in a firm’s GST Clearing account was a GST refund of $130. During
the month of September the firm had cash sales of $3,000 and credit sales of $1,100. The firm also
paid GST of $70 and was charged $130 of GST by suppliers on credit purchases of stock.
10. At the end of September, the balance in the firm’s GST Clearing ledger will be:
a) DEBIT $80
b) CREDIT $340
c) CREDIT $80
d) CREDIT $70

5. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 8 – ACCOUNTING FOR GST
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 5
11. A business had a GST liability of $420 owing to the tax office. This was settled on 31 July. Which
of the following ledgers represents these events?
a)
GST Clearing [L]
31 Jul Balance 420 31 Jul Cash at bank 420
Cash at Bank [A]
31 Jul GST clearing 420
b)
GST Clearing [L]
31 Jul Cash at bank 420 31 Jul Balance 420
Cash at Bank [A]
31 Jul GST clearing 420
c)
GST Clearing [L]
31 Jul Cash at bank 420 31 Jul Balance 420
Cash at Bank [A]
31 Jul GST clearing 420
d)
GST Clearing [L]
31 Jul Cash at bank 420 31 Jul Balance 420
Cash at Bank [A]
31 Jul Cash at bank 420

6. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 8 – ACCOUNTING FOR GST
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 6
12. A business with a GST refund balance of $1,230 finally received settlement from the
government on 30 April. Which of the following ledgers represents these events?
a)
GST Clearing [L]
30 Apr Balance 1230 30 Apr Cash at bank 1230
Cash at Bank [A]
30 Apr GST clearing 1230
b)
GST Clearing [L]
30 Apr Cash at bank 1230 30 Apr Balance 1230
Cash at Bank [A]
30 Apr GST clearing 1230
c)
GST Clearing [L]
30 Apr Balance 1230 30 Apr GST clearing 1230
Cash at Bank [A]
30 Apr GST clearing 1230
d)
GST Clearing [L]
30 Apr Balance 1230 30 Apr Cash at bank 1230
Cash at Bank [A]
30 Apr GST clearing 1230

7. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 8 – ACCOUNTING FOR GST
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 7
A business had the following totals in its Cash Receipts Journal:
Cash Receipts Journal
Date Details
Rec
No.
Bank $
Cost of
Sales $
Sales $ Sundries $ GST $
30 Sep Totals 9,340 3600 7100 1530 710
13. Based on this information, which of the following ledgers is incorrect?
a)
GST clearing [L]
30 Sep Cash at bank 710
b)
Cash Sales [R]
30 Sep Cash at bank 7100
c)
Cash at Bank [A]
30 Sep Cash receipts 9340 30 Sep GST clearing 710
d) All of these ledgers are correct

8. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 8 – ACCOUNTING FOR GST
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 8
A business had the following totals in its Cash Payments Journal:
Date Details
Cheque
No.
Bank $ Stock $ Drawings
$
Rent $ Sundries
$
GST $
31 Jul Totals 7,390 3,400 1,250 900 1,410 430
14. Based on this information, which of the following ledgers is incorrect?
a)
GST Clearing [L]
31 Jul Creditors control 430
b)
Cash at Bank [A]
31 Jul Cash payments 7390
c)
Rent [E]
31 Jul Cash at bank 900
d) All of these ledgers are correct

9. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 8 – ACCOUNTING FOR GST
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 9
A business had the following totals in its Sales Journal:
Sales Journal
Date Debtor Invoice
Number
Cost of Sales
$
Sales $ GST $ Total
Debtors $
31 Jan Totals 2100 4300 430 4730
15. Based on this information, which of the following ledgers is incorrect?
a)
Credit Sales [R]
31 Jan Debtors control 4300
b)
Debtors Control [A]
31 Jan Credit sales/GST clearing 4730
c)
GST Clearing [L]
31 Jan Debtors control 430
d) All of these ledgers are correct

10. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 8 – ACCOUNTING FOR GST
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 10
A business had the following totals in its Purchases Journal:
Purchases Journal
Date Creditor Invoice
Number
Stock $ GST $ Total
Creditors $
31 Aug Totals 6900 690 7590
16. Based on this information, which of the following ledgers is incorrect?
a)
Stock Control [A]
1 Aug Balance 25000
31 Aug Creditors control 6900
b)
GST Clearing [L]
31 Aug Creditors control 690
c)
Creditors Control [L]
31 Aug Stock /GST clearing 7590
d) All of these ledgers are correct

11. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 8 – ACCOUNTING FOR GST
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 11
A business had the following totals in its journals for the month of October:
Sales Journal
Cost of sales $1,070
Sales $2,130
GST $213
Total $2,343
Purchases Journal
Stock $1,670
GST $167
Total $1,837
17. At the end of the month, the firm settled its GST Clearing account. Based on this information,
the firm’s GST Clearing account will look like:
a)
GST Clearing [L]
31 Jan Creditors control 167 31 Jan Debtors control 213
31 Jan Cash at bank 46
213 213
b)
GST Clearing [L]
31 Jan Creditors control 213 31 Jan Debtors control 167
31 Jan Cash at bank 46
213 213
c)
GST Clearing [L]
31 Jan Debtors control 167 31 Jan Creditors control 213
31 Jan Cash at bank 46
213 213
d)
GST Clearing [L]
31 Jan Creditors control 167 31 Jan Debtors control 213
31 Jan Cash at bank 153 31 Jan Stock control 107
320 320

12. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 8 – ACCOUNTING FOR GST
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 12
A business has provided the totals of some of the columns in its Special Journals for April below:
Cash Receipts Journal
Sales $1,940
GST $194
Amount banked $6,250
Cash Payments Journal
Stock $1,300
GST $210
Amount paid $4,890
Sales Journal
Sales $1,300
GST $130
Total $1,430
Purchases Journal
Stock $640
GST $64
Total $924
18. At at the beginning of April the firm’s GST Clearing account showed that it owed the
government $145. The firm’s GST Clearing account is settled on 30 April. Based on this
information, the firm’s GST Clearing account will look like:
a)
GST Clearing [L]
30 Apr Cash at bank 210 1 Apr Balance 145
30 Apr Cash at bank 64 30 Apr Debtors control 194
30 Apr Creditors control 195 30 Apr Cash at bank 130
469 469
b)
GST Clearing [L]
30 Apr Cash at bank 210 1 Apr Balance 145
30 Apr Creditors control 64 30 Apr Cash at bank 194
30 Apr Cash at bank 195 30 Apr Debtors control 130
469 469
c)
GST Clearing [L]
1 Apr Balance 145 30 Apr Cash at bank 194
30 Apr Cash at bank 210 30 Apr Debtors control 130
30 Apr Creditors control 64 30 Apr Cash at bank 95
419 419
d)
GST Clearing [L]
30 Apr Cash at bank 210 1 Apr Balance 145
30 Apr Stock control 64 30 Apr Cash at bank 194
30 Apr Cash at bank 195 30 Apr Credit sales 130
469 469

13. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 8 – ACCOUNTING FOR GST
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 13
At the beginning of July, the balance in a firm’s GST ledger was a refund of $100. The business
engaged in the following transactions during the month of July :
Jul 3 Cash sale of $1,700 plus 10% GST (cost price $850)
Jul 7 Purchased inventory on credit $800 plus $80 GST
Jul 14 Sold goods on credit for $1,980 including GST (cost price $900)
Jul 15 Paid monthly advertising bill of $250 plus $25 GST
Jul 17 Stock purchased on credit for $900 plus GST of $90
Jul 20 Telephone expenses of $70 were paid plus $7 GST
Jul 21 A cash sale was made for $200 plus $20 GST (cost price $100)
Jul 25 Goods sold on credit for $440 plus GST (cost price $200)
Jul 30 The firm settled its GST Clearing account
19. Based on this information, the firm’s GST Clearing account will look like:
a)
GST Clearing [L]
31 Jul Cash at bank 32 1 Jul Balance 100
31 Jul Creditors control 170 31 Jul Cash at bank 190
31 Jul Cash at bank 312 31 Jul Debtors control 224
514 514
b)
GST Clearing [L]
1 Jul Balance 100 31 Jul Cash at bank 190
31 Jul Cash at bank 32 31 Jul Debtors control 220
31 Jul Creditors control 170
31 Jul Cash at bank 108
410 410
c)
GST Clearing [L]
1 Jul Balance 100 31 Jul Cash at bank 32
31 Jul Cash at bank 190 31 Jul Creditors control 170
31 Jul Debtors control 224 31 Jul Cash at bank 312
514 514
d)
GST Clearing [L]
1 Jul Balance 100 31 Jul Cash at bank 190
31 Jul Cash at bank 32 31 Jul Debtors control 224
31 Jul Creditors control 170
31 Jul Cash at bank 112
414 414

14. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 8 – ACCOUNTING FOR GST
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 14
A business incorrectly recorded a credit sale of $670 (plus GST) into the Sales Journal for the amount
of $760 (plus GST). The cost price of the stock sold was $300 plus $30 GST.
20. As a result of this error, the firm’s GST Clearing ledger will have:
a) Debits overstated by $9
b) Credits overstated by $9
c) Debits overstated by $99
d) Credits overstated by $99
A firm made a cash payment for $320 for advertising on 17 November. In entering this transaction,
the firm forgot to record the $32 of GST into the GST Clearing ledger.
21. As a result of this error, the firm’s GST Clearing ledger will have:
a) Debits understated by $32
b) Credits understated by $32
c) Debits overstated by $32
d) Credits overstated by $32
A small business provided the following GST Clearing ledger at the end of August.
GST Clearing [L]
1 Aug Balance 280 31 Aug Cash 750
31 Aug Cash 430 31 Aug Debtors control 590
31 Aug Creditors control 670 31 Aug Cash 280
22. At the beginning of August the firm’s GST Clearing ledger would have been listed in which
section of the Balance Sheet?
a) Current Assets
b) Current Liabilities
c) Non‐Current Assets
d) Non‐Current Liabilities
23. The entry marked [₳] above would have been posted from which of the firm’s Special Journals?
a) Cash Receipts Journal
b) Cash Payments Journal
c) Sales Journal
d) Purchases Journal
₳ +
¤

15. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 8 – ACCOUNTING FOR GST
© Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Page | 15
24. The entry marked [+] above would have been posted from which of the firm’s Special Journals?
a) Cash Receipts Journal
b) Cash Payments Journal
c) Sales Journal
d) Purchases Journal
25. The entry marked [¤] above would have been posted from which column of the firm’s Cash
Receipts Journal?
a) GST
b) Sales
c) Cost of sales
d) Sundries