Question
QUESTION 2 - GST (10 Marks) Lorraine is the owner of a retail shop in Paddington, Sydney which last financial year had a turnover of
QUESTION 2 - GST(10 Marks)
Lorraine is the owner of a retail shop in Paddington, Sydney which last financial year had a turnover of $320,000. On 1 August 2020 she purchased $11,000 worth of garments from a Chinese manufacturer for sale in her business. An additional charge of $130 for delivery and insurance and a $20 for customs duty were also incurred in relation to the purchase.
During the financial year ending 30 June 2021 Lorraine sold $150,000 worth of garments. She also paid the following amounts in respect of the shop:
Rent $35,000
Electricity $8,000
Bookkeeping fees $3,500
AdviseLorraine of her GST liability/refund in relation to the above transactions for the year ending 30 June 2021.
NOTE:Your answermust besupported by references to relevant legislation, case law and/or rulings.
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