QUESTION 1

Thea carries on an interior decoration business where she is registered for GST on a quarterly basis. She had the following transactions in the June 2020 quarter

: Invoiced interior decoration consulting services totalling $66,000. Cash received during the quarter from the supply of consulting services. totalling $44,000.

Invoiced sales of furniture totalling $88,000. Cash received during the quarter from sales of furniture totalling $99,000.

Based on this information and assuming that Thea accounts for GST on a cash basis what amount of GST liability will she have in the current quarter?

a) $12,000.

b) $14,000.

c) $13,000.

d) $9,000.

e) $Nil

QUESTION 2

Lara owns a residential rental property and a retail premises that she rents to tenants in Gatton (Queensland). Lara is registered for GST on a quarterly basis and accounts on the cash basis. During the June 2020 quarter Lara paid $330 in management fees to the real estate agent who manages her residential rental property. Lara also paid $660 to an electrician for repair work to the retail premises. Lara has valid tax invoices for both these expenses, and both included GST.

Assuming no other transactions occurred in the quarter, which of the following represents Laras input tax credit entitlement for the June 2020 quarter?

a) $60.

b) $30.

c) $90

. d) Nil

e) $990.