Question 1
Assume that the following business is registered for GST.
For each of the following transactions, indicate in the table below
a) Whether or not GST is applicable, and if so, how much is payable or able to be claimed as an input credit?
b) Indicate which source document/s would provide evidence of the transaction?
Transaction
GST – yes or no?
If GST, how much?
Which source document/s would provide evidence of the transaction?
Paid for overseas flights $2,200 to attend a conference
Purchased goods on credit from W Willis $770
Received and banked daily cash sales $1,807
Sold inventories on credit to B. Blake $979
Paid a cheque to Telstra $429
Banked daily cash sales $1 716
Bought goods on credit from M Miles $858
Interest received on investment account $63
Monthly wages and salaries paid directly from business bank account to various employees $4,600
Paid off some of the amount owing to M. Miles $700
Dividend received from investment shares $215
Sent tax invoice to C Hunter for goods sold $1,793
Received some money owing from an account receivable, C. Hunter, $1,100
Returned some faulty goods which had been bought on credit from W. Willis for $80
Recorded the interest which had been charged on overdrawn bank account – $28