Question
A large company in Australia, called Alex Ltd , supplied $22,000 (GST Inclusive) worth of products to one of its local customers, Beta Pty Ltd
A large company in Australia, called Alex Ltd, supplied $22,000 (GST Inclusive) worth of products to one of its local customers, Beta Pty Ltd, on 1 August 2019. Beta paid this bill in two equal instalments of $11,000 on 10 May 2020 and the second instalment on 15 September 2020.
Discuss how each entity should account for GST. Alex Ltd is a GST-registered entity with ATO and accounts for GST on accrual basis, files BAS monthly and remains registered, while Beta is not registered for GST at all in both years.
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International Financial Reporting
Authors: Alan Melville
7th Edition
1292293128, 9781292293127
