GST question Week 6 practice solution PDF

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Download GST question Week 6 practice solution PDF

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Week 6 Exercise – GST -

Prepare the journal entries for the following transactions. GST is indicated where necessary.

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Post the transactions to the GST clearing account.

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What is the final balance of the GST clearing amount? State if this amount is a refund or if GST needs to be payable to the ATO

1. Paid insurance expense inclusive of GST $1,100 2. Cash revenue received inclusive of GST $5,500 3. Purchased motor vehicle on credit inclusive of GST $33,000 4. Paid advertising expense inclusive of GST $660 5. Paid salary expense for the month $3,000. 6. Provided service revenue on credit inclusive of GST $3,300

General Journal entries for transactions provided Details Pos DR

Date

CR

t Ref 1

2

3

4

5

6

Insurance expense GST clearing Cash

1,000 100 1,100

Cash GST clearing Revenue

5,500.00 500 5,000

Motor Vehicle GST clearing Accounts Payable Advertising expense GST clearing Cash

30,000 3,000 33,000 600 60 660

Salary expense Cash

3,000

Accounts Receivable GST clearing Service Revenue

3,300

3,000

GST Clearing

300 3,000

100 3,000 60 3,160

REFUND

2,360

500 300 2,360 3,160...