Question
Kelly received an advance payment on 5 March 2018. However, due to some disagreement she paid back all of the payment on 30 August 2018.
Kelly received an advance payment on 5 March 2018. However, due to some disagreement she paid back all of the payment on 30 August 2018. Kelly uses the Category A two-monthly GST period and the cash basis to file her GST returns. Kelly would account for the GST on the advance payment received and GST adjustment on the payment made according to one of the following:
Select one:
a.Kelly includes the advance payment received in total sales in Box 5 of her GST return in the two-monthly GST period ending 31 March 2018. She would make a GST adjustment in IR372 for the period ending 30 September 2018
b.Kelly includes the advance payment received in total sales in Box 5 of her GST return in the two-monthly GST period ending 31 March 2018. She would ask IRD to reassess the return that included the advance payment
c.Kelly would not include the advance payment received in the GST return as it is treated as a loan
d.Kelly includes the advance payment received in total sales in Box 5 of her GST 101A return in the two-monthly GST period ending 30 September2018 and at the same time include an adjustment usingIR372 return
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