Determine the GST net amount for the quarter ended 30 June 2021, assuming that Paul holds valid tax invoices for all its acquisitions.

Paul Young operates his own electronic retail store as a sole trader under the trading name "Everything Electronics". The business sells a range of electronics including laptop computers, television sets, DVD recorders and surround sound audio systems.

The business uses the cash method for accounting and GST reporting purposes. The business is registered for the GST and lodges its BAS statements on a quarterly basis.

You are provided with the following information in relation to the quarter ended 30 June 2021:

Receipts (inclusive of GST where appropriate)
Gross sales to Australian customers	$660,000
Gross sales to overseas customers (goods are exported to various coutries)	$110,000
Unfranked difidends received from Qantas Ltd	$660
Gross proceeds from the sale of a cash register used exclusively in the business	$1,100
Disbursements(inclusive of GST where appropriate)
Purchases of trading stock (imported from overseas suppliers)	$220,000
Purchases of trading stock (from Australian GST-registered wholesalers)	$165,000
Wages paid to employees	$154,000
Drawings made by Paul	$22,000
Bank charges (in relation to the business bank account)	$330
Telephone expenses (paid to Optus)	$990
Purchase of new motor vehicle (estimated 75% used for business purposes)	66,000

ADDITIONAL INFORMATION:

• The new motor vehicle costing $66,000 was purchased from Southside Toyota, a car dealer that is registered for the GST. Paul reliably expects to use the vehicle 75% of the time for business purposes and 25% of the time for private purposes.

 Please note that marks will be deducted if students include extra items in either Paul's GST collected or GST paid figures that should not be included.

 

Answer rating: 100% (QA)

ANSWER To calculate the GST net amount for the quarter ended 30 June 2021 we need to determine the GST collected and the GST paid by Paul Heres the br... View the full answer