Frederic owns a bookstore in Collins Street, Melbourne. Frederic is registered for GST. His records for the
Question:
Frederic owns a bookstore in Collins Street, Melbourne. Frederic is registered for GST. His records for the quarter ending 30 June 2021 are as follows:
Cash Receipts | $ |
Gross Receipts from Book Sales | $77,000 |
Interest Income from Term Deposit | $1,200 |
Gross proceeds from Sale of Bookcase (See Note A) | $1,900 |
Cash Payments | $ |
Purchases of Books | $11,000 |
Purchase of Bookcase (See Note A) | $5,500 |
Commercial Rent paid for the bookstore | $11,000 |
Electricity paid for the bookstore | $1,500 |
Tea and Coffee Supplies for kitchenette in bookstore | $150 |
Additional Information
- A bookcase that was used in the bookstore was replaced in May 2021.
- Where applicable, figures are GST inclusive.
- Valid tax invoices are held for all relevant payments.
- Frederic accounts for GST on a cash basis and lodges quarterly business activity statements.
- Frederic employs two part time staff.
REQUIRED:
Determine the net GST payable (refundable) to the ATO by completing the following summary taken from the business activity statement: Fill out the blanks.
Amounts you owe the ATO | Amounts the ATO owes you | ||
GST on sales or GST instalment 1A $ | GST on purchases 1B $ | ||
9 Your payment or refund amounts $ | |||
Expert Answer:
Based on the information provided we can calculate the GST on sales and purchases as follows GST on ... View the full answer
