Task 2C - GST Basics
0 likes572 views
This document contains sample questions and explanations about accounting for goods and services tax (GST) for a trading business. It includes a table to complete information about GST collected from customers, GST paid to suppliers, and the resulting GST refund or liability. There are also questions that require explaining how a GST liability meets the definition of a liability in the balance sheet, whether GST paid on purchases is an expense, and how GST would be classified in the balance sheet. The document provides context and questions for students to demonstrate their understanding of accounting for GST.
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