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Task 2C - GST Basics
1.
VCE ACCOUNTING UNIT 3
– RECORDING AND REPORTING FOR A TRADING BUSINESS CHAPTER 2 – BALANCE SHEETS © Michael Allison Author’s express permission required for external or professional use Page | 1 Name Student50 Task 2C GST Basics Question 1 For each of the following situations, complete the missing information in the table below. GST collected/ charged to customers GST paid/ charged by suppliers GST Refund or Liability Amount $ a) 1950 760 b) 790 1490 c) 800 GST Liability 320 d) 1000 GST Refund 430 e) 540 GST Refund 200 f) 520 GST Liability 700 6 marks Question 2 At the end of the current period, a business reported a GST Liability of $450 in its Balance Sheet. Explain how GST owing to the tax office meets the definition of a Liability. Explanation 3 marks
2.
VCE ACCOUNTING UNIT 3
– RECORDING AND REPORTING FOR A TRADING BUSINESS CHAPTER 2 – BALANCE SHEETS © Michael Allison Author’s express permission required for external or professional use Page | 2 Question 3 During the current period a firm paid $800 in GST on $8,000 stock it had purchased. With reference to the elements of accounting, explain whether the $800 GST paid of meets the definition of an Expense. Explanation 2 marks Question 4 A business provided the following information for the current period: GST collected on cash sales $1,600 GST charged on credit purchases $1,200 GST paid on cash purchases $2,300 GST charged on credit sales $1,500 With reference to the elements of accounting, explain how GST will be classified in the Balance Sheet of the business at the end of the period. Explanation 1 + 3 = 4 marks Total /15 marks
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