Taylor Ltd is a retailer registered for GST and accounts for GST on accrual basis. During April
Question:
Taylor Ltd is a retailer registered for GST and accounts for GST on accrual basis. During April 2018 the company sold products for $48,400 (including GST). Purchases of goods sold during April were $26,400 (including GST). In addition, the company paid $4,000 plus GST for consulting services received in April. What is the journal entry to record the remittance/refund of the GST to/from the taxation authority? (GST = 10%)
a. Dr GST collected $4,400; Cr GST paid $2,800; Cr Cash $1,600
b. Dr GST collected $4,840; Cr GST paid $3,040; Cr Cash $1,800
c. Dr GST collected $4,400; Dr Cash $1,600; Cr GST paid $2,800
d. Dr GST paid $2,800; Dr Cash $1,600; Cr GST collected $4,400
e. Dr GST paid $3,040; Cr GST collected $4,840; Cr Cash $1,800
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett