subject ; current issue in Taxation (TLAW604)

Question 5 (5 marks) Facts Jo is the owner of Yummy Seafood, a seafood supermarket. The business accounts for GST on an accrual basis. Jo sells various seafood on account to various restaurants in NSW. The restaurants are also all registered for GST. Recently, Jo received a letter from one restaurant advising her that the restaurant was placed in liquidation and as a result they are not able to pay Jos bills totalling $55,500, including GST. As a result, Jo has written off the debt. Question What is the effect of the above transactions on Jos net amount for the relevant tax period?