Question 1

Business Scenario

The Chicken Coop is a business operated by Jenny Jones. It supplies fresh (raw) whole chickens and chicken pieces. The shop also has a rotisserie oven and sells cooked whole chickens and cold drinks. There are 2 employees, Li and Gerald. Business sales include taxable and GST free sales. Purchases also include taxable and GST free amounts. Jenny uses her motor vehicle for business purposes and has kept a logbook which shows 65% business use. Her mobile phone is used 80% for business use. The business premises are owned by Jenny and consist of 2 shops downstairs and a second upstairs floor which is a residential apartment. The Chicken Coop occupies one shop while the second is rented to a bakery. The upstairs apartment is rented out as residential accommodation.

The Chicken Coop is registered for GST on a cash basis. Manual accounting records are kept and the following:

GST codes are used:

GST No tax (not reportable)

GST Free Input Taxed Supply

Input taxed Exports

Complete the following table to identify the correct code from the list above for each transaction and the amount of GST collected. Refer to the GST Act and relevant public rulings and determinations for guidance.

Your answers:

Received $11.00 sale fresh chicken $8.00 can soft drink $3	Two codes
Received $28.00 sale hot chicken $24 bottled water $4	Two codes
Received $45.00 sale $16 hot chickens, $29 fresh chicken pieces	Two codes

Question 2

Complete the following table to identify the correct code from the list above for each transaction and the amount of GST input tax credit which can be claimed.

Your answer:

Your answer:

Paid motor vehicle repair costs (including GST) $864.40	One code
Paid mobile phone account (including GST) $69.95	One code
Paid insurance on building $1815.00 (including GST). (Floor area is 1/4 for Chicken Coop, 1/4 for Bakery and for upstairs flat.)	Two codes

Revised answer: