BAS Case Study

AutoSave . OFF Document4 Q Home Insert Draw Design Layout References Mailings Review View Tell me Share Comments Calibri AA Aa Po AaBbCcDdEe AaBbCcDdEe AaBbCcD AaBbCcDdE AaBb AaBbCcDdE AaBbCcDdEe Paste BIU Normal No Spacing Heading 1 Heading 2 Title Subtitle Subtle Emph Styles Dictate Pane Question 4- BAS Case Study (28 marks) Do not deduct mark for consequential errors. Boosting Sales is registered for GST as a cash payer and has chosen to report and calculate its GST every quarter. As a bookkeeper, part of your job description is to complete the quarterly BAS (under the direction of your client's tax agent). Required: The following was extracted from the accounts for the quarter ended 31December 2016. Complete the followings: a) GST Classification Worksheet for BAS purposes (12 Marks) b) GST Calculation Worksheet for BAS purposes (12 Marks) c) When is the payment due date? (2 Marks) d) Enter the journal entry to process the payment. (2 Marks) Note: All values are GST inclusive (wherever applicable) SUMMARY Sales of goods and services 440,000 Export sales 7,700 Other GST-free sales 6,600 Commercial Rent 99,000 Residential Rent 22,000 Sale of Assets 5,500 General Business Expenses 220,000 Business Council & Water Rates 2,200 Depreciation 4,400 Commercial Rent Expenses 9,900 Residential Rent Expenses 4,40 Purchase of Fax Machine 2,200 Mark-up Area Wages & Salaries 38,000 Superannuateon 7,920 PAYG tax withheld 25,000 Page 1 of 4 575 words OF English (Australia) Focus E + 110%AutoSave . OFF Document4 Q Home Insert Draw Design Layout References Mailings Review View Tell me Share Comments Calibri A Aav Po AL AaBbCcDdE AaBbCcDdEe Paste 19 AaBbCcDdEe AaBbCcDdEe AaBbCcD AaBb AaBbCcDdE BIU Av LAV IEv Normal No Spacing Heading 1 Heading 2 Title Subtitle Subtle Emph Styles Dictate Pane a) GST Classification worksheet Outputs: Account Outputs| Taxable Exports | GST- Free Input Excluded Details Taxed Sale of goods 440.000 440.000 & services Export Sales 7.700 7.700 Sale of assets 5.500 5,500 Other GST-free 6.600 6.600 sales Commercial 9.900 9.900 Rent Residential 4.400 4.400 Rent TOTALS 474.100 455.400 7.700 6.600 4.400 GST G6 (32 23 Ga Classification Worksheet Reference Inputs: Account Inputs Capital Non Taxable | Input GST Excluded Details Purchases Capital Supply Taxed Free Mark-up Area Purchases General 220.000 220.000 Business expenses Business 21200 2.200 council & water rates Depreciation 1.400 Commercial 9.900 9.900 rent expenses Page 2 of 4 575 words English (Australia) Focus E + 100%AutoSave . OFF Document4 Q Home Insert Draw Design Layout References Mailings Review View Tell me Share Comments Calibri A Aa v 19 AaBbCcDdEe AaBbCcDdEe AaBbCcD AaBbCcDdE AaBb AaBbCcDdE AaBbCcDdEe Paste BIU Av LA v Normal No Spacing Heading 1 Heading 2 Title Subtitle Subtle Emph Styles Dictate Pane Residential rent 4.400 4.400 expenses Purchase of 2.200 2.200 Fax Machine Wages & 88.000 salaries Superannuateon 7.920 7.920 PAYG 25.000 25.000 Withholding TOTALS 864,020 232.100 4.400 2.200 32.920 GST G10 G11 G17 G13 G14 Excluded Classification Worksheet Reference G1 Total Sales (including any G10 Capital Purchases GST) 474.100 (including any GST) G2 Exports 7.700 G11 Non-Capital Purchases 364.020 (including any GST G3 Other GST -Free Sales 5.600 G12 G10 + G11 364.020 G4 Input Taxed Sales 4.400 G13 Purchases for making 4.400 Input Taxed Sales G5 G2 + G3 + G4 18.700 G14 Purchases without GST 2.200 Mark-up Area In the price G6 Total Sales subject to GST | 455.400 | G15 Estimated Purchases for G1 minus G5 Private Use or not Income Tax Deductible G7 Adjustments (if applicable) S G16 313+ G14+ G15 6.600 G8 Total Sales subject to GST G17 Total Purchases subject 357.420 after Adjustments (G 455.400 to GST (G12 minus G16) +G7) Sales (G8 divided 41.400 G18 Adjustments (it SO by eleven applicable) G19 Total Purchases subject 357.420 to GST after Adjustments (G17 + G18 Page 3 of 4 575 words DEX English (Australia Focus + 100%AutoSave . OFF Document4 Q Home Insert Draw Design Layout References Mailings Review View Tell me Share Comments Calibri A Aa Po AaBbCcDdEe AaBbCcDdEe AaBbCcD AaBbCcDdE AaBb AaBbCcDdE AaBbCcDdEe 19 Av LAV Normal No Spacing Heading 2 Title Subtitle Paste Heading 1 Subtle Emph Styles Dictate BIU Pane G20 GST on Purchases (G19 | 32.492 divided by eleven) Ashraful Minhaz NET GST PAYABLE $8.908 Incorrect G9 minus G20) b) GST Calculation Worksheet for the quarter ended 31 December 2014: Ashraful Minhaz c) Payment due date Not responded d) Journal entry to record the payment: Date Particulars Debit ($) Credit ($) December Sales of goods and services 440.000 December Export sales 7.700 December Other GST-free sales 6.600 December Commercial Rent 9.000 99.000 December Residential Rent 22.000 December Sale of Asset 5.500 December General Business Expenses 220.000 December Business Council & Water Rates 2.200 December Depreciation 4.400 December Commercial Rent Expenses 9.900 Mark-up Area December Residential Rent Expenses 4.400 December Purchase of Fax Machine 2.200 December Wages & Salaries 88.000 December Superannuateon 1.920 December PAYG tax withheld 25.000 Ashraful Minhaz TOTAL 463.020 580.800 Incorrect Journal Page 4 of 4 575 words DEX English (Australia Focus E + 100%