Carry Out Business Activity and Instalment Tasks TPB …€¦ · Repairs to flat 1,800 . Ex 9 ....

Carry Out Business Activity and Instalment Tasks

TPB Requirements worksheet- Semester 1 2015 WEEK 1 PART A 1. What does TPB stand for? What is the role of the TPB

Registration requirements 2. Who needs to register as a BAS agent?

3. What is a BAS service?

PART B Relevant experience 4 In summary what is “relevant experience”? 5. List 5 types of BAS work that you may count towards relevant experience

BSA of 40 9/12/2014

6. What is the number of relevant work experience hours required? PART C BAS Agent Qualifications There are 2 parts to the educational qualifications. 7. What is the first part of the educational qualifications? 8. What is the second part of the qualification? PART D BAS Legislative Requirements worksheet- Semester 1 2015 Professional ethics in the finance sector is imposed on bookkeepers and accountants through the Tax agents Services Act 2009. the accounting professional and ethical standards Board, professional associations and the Privacy act 1988. List and explain the essential principles of Professional ethics

BSA of 40 9/12/2014

3. Explain the Code of professional conduct under the Tax agents services act 2009

4. What are the repercussions for thea) the bookkeeper and (b) the profession for violations of the

Code of conduct? Homework activities List and briefly explain the legislative requirements that a bookkeeper must comply with. Why is it important for a bookkeeper to maintain currency? Research a professional body. List the professional development activities being offered

BSA of 40 9/12/2014

WEEK 2 Income Tax Law Ex 1 Ernie has assessable income of $64,000 and deductions of $8,000 what is his taxable income? Ex 2(a) Explain what is meant by the term marginal tax rate. Illustrate your answer by using the example of a person who has earned $4,000 in overtime. The overtime means that her taxable income is $58,000, instead of $54,000. (b) John Bartlett’s taxable income for 2014 is $ 89,900. What is his marginal tax rate? Ex 3 For the following individuals, calculate the income tax and Medicare levy for the year ended 30 June 2015. (a) $69,900 (b) 94326 (c) 190,860 Ex 4 Which of the following receipts is assessable income? Assessable Not

assessable Interest of $100 received form EastBank $1,000 won on Lotto Wages of $600 received by employee Cash received from sales made by a business Rent received from leasing a property Gift of $500 received from work colleagues for getting married

$400 withdrawn by a person from her savings account A refund of tax from the Australian Taxation office $100 found in the street Loan from the bank Ex 5 Allowable

deduction Not allowable

Income tax of $7,000 withheld from employee’s wages Work related use of internet Payment of $1,300 for domestic ironing Payment of $1,900 for electricity for business premises Car costs of trips from home to work A suit costing $250 purchased by a person starting their first job

Ex 6 Calculate the Medicare levy for the year ended 30 June 2015 for the following single people with taxable incomes of

(a) $46,890 (b) $18,800 (c) $150,000

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Ex 7 Calculate the Medicare Levy surcharge for the following single taxpayers:

• Joan has taxable income of $93,000 and is not covered by private health insurance • Doreen has taxable income of $69,000 and is not covered by private health insurance • Ken has taxable income of $85,000, reportable fringe benefits of $6,000

Ex 8 From the following information, Calculate assessable income, allowable deductions; taxable income AND tax payable or refundable Receipts Gross salary from employment( PAYG 3382) 36,000 Rent received from rented flat 12,000 Expenses Food, clothing and other daily living expenses 6,000 Repairs to flat 1,800 Ex 9 From the following information, calculate taxable income and tax payable or refundable Income Gross Wages(PAYG 16685) 77,350 Sales from antique business 14,200 Expenditure Food 4,000 Union subscriptions 380 Gift to Approved charities 235 Purchases and other deductible expenses 3,000

BSA of 40 9/12/2014

TFN WORK SHEET WEEK 2 Access the ATO website Ex 1 List 5 reasons why you need a TFN Ex 2 Do you have to apply for a TFN? Ex3 How can you apply for a TFN? (Point form) Ex 4 What are the steps for applying online?

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Ex 5 What are the two types of Proof of identity documents? Provide 3 examples of each Ex6 List the people/organisations to which a TFN should be quoted WEEK 2 ABN Ex 7 ABN Research the ATO Website and complete the following questions Who is entitled to ABN? Ex 8 List the information you require to apply for an ABN? EX 9 What are the benefits for a business in obtaining an ABN?

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WEEK 3 PAYG Withholding BAS Activities Ex 1 Manchester Fabrics Pty Ltd employs 2 consultants. It is not classified as a large withholder. Remuneration paid during the September quarter 2013 was as follows: Gross Wages $8,600 Directors fees 1,900 PAYG Withheld 3,780 Employee travel allowances 1,000 Amounts invoiced by workers under voluntary agreements (ex GST)

1,100

Superannuation paid on behalf of employees and director

1,134

Required: Complete W1-W5 on the BAS Ex 2 Brubeck’s employees 3 builders. It is not a medium or large withholder. Remuneration paid during the quarter: Gross Wages $6,700 Directors fees 3,500 PAYG Withheld 3,200 Car allowances 800 Profit on sale of office equipment 3,000 Superannuation paid on behalf of employees and director

918

Required: Complete W1-W5 on the BAS Ex 3 (a) Example using W4 Manchester fabrics purchased $1,000 worth of stationery from NoBAS office supplies. No ABN was quoted on the invoice provided by NoBas office supplies. Payment was made by Manchester fabrics before the end of the quarter. Required: How much was paid to Manchester Fabrics? Complete the PAYGW section of the BAS (b) Example using W3 Manchester Fabrics paid a dividend of $500 to a non-resident shareholder and withheld $232 Required: Complete the PAYGW Section of the BAS

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Comprehensive Examples.PAYG withholding BAS Ex 4 Morecambe Fisheries employs Jim Pike as a fisherman. The business is not a large withholder. The payroll for Morecambe Fisheries for June included: Gross wages $8,000 Travel allowance 600 Superannuation paid 700 Annual leave loading 180 PAYG withheld from gross wages 900 During the June quarter Jim was injured and unable to work for several weeks. Morecambe Fisheries was required to hire Temp Fisherman Pty Ltd. Morecambe Fisheries was invoiced gross payment of $3,500 to Temp fisherman for work done. No ABN was quoted on the invoice provided by Temp fisherman Pty Ltd. Complete W1,W2,W4,W3,W5 on the June BAS Ex 5 Dave Brubeck owns a musical tuition business called. He employs two staff. For the June Quarter Dave’s payroll include the following amounts Gross wages $8,800 Motor vehicle allowance 600 Superannuation paid 913 Annual leave loading 400 PAYG withheld from gross wages 3,200 Payments to labour hire Organization 2,500 Directors Fees 1,200 During the June quarter additional staff was required to meet demand. Staff was hired from Krall enterprises. The ABN was quoted on the invoice provided by Krall enterprises. A short term loan of $10,000 was required to purchase additional instruments. This loan was provided by a non-resident who charged interest of $1,000, from which $465 was withheld. The loan was paid back during the quarter Complete W1,W2,W4,W3,W5 on the June BAS

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PAYG INSTALMENT WEEK 4 Ex 1 Abbotts Confectionaries Calculate the PAYG instalment income Complete option 2 for PAYG instalments Calculate the amount of PAYG instalment to be paid

• Sales $222,000 (GST Inclusive) • Interest received $800 • Residential rental income received $1,100 • Commercial rental income $55,000 (GST Inclusive) • Dividend income $438 • Franking Credit $44 • Sale of shares $1,000

Option 2: Calculate PAYG instalment using income tax times rate

tAYG instalment income T1 $

T2 6.20 %ORNew varied rate T3 %

T1 x T2 (or x T3) T11 $

Write the T11 amount at 5A in the Summary section

T4

tAYG income tax instalment 5A $

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Ex2 Charlie Chap operates a small business and receives investment income. He accounts for GST and PAYG Instalments on a cash basis, This is a list of revenue (GST inclusive where applicable) received for the January – March 2015 quarter by Charlie: Sales 44,000 Commercial rent received 11,000 Residential Rent received 8,800 Interest received 1,200 Dividend Income(including Franking Credit 300) 3,300 Sale of business printer 2,200 Total Revenue 70,500

a. Calculate the PAYG instalment income.

b. Calculate the PAYG income tax instalment assuming a PAYG income tax instalment rate of

8.73%

Option 2: Calculate PAYG instalment using income tax times rate


T2 8.73 %ORNew varied rate T3 %

T1 x T2 (or x T3) T11 $

Write the T11 amount at 5A in the Summary section

T4

tAYG income tax instalment 5A $

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Reason code Variation Ex 3 Millie & Isabel’s dress shop provides the following information for the September quarter Dress sales(including GST) 24,000 Interest Received 600 Business Loan –Eastpac Bank 25,000 Gross rental income received on residential property 1,200 Capital Gain on sale of shares 10,000 The instalment Rate provides is 8.5% As a result of a change in government legislation which will significantly increase sales. Instalment income is expected to increase by 20% and estimated income tax is expected to increase to $3,500 Required: Complete T1,T2, T3,T11 and T4 on Millie & Isabel’s September BAS

Option 2: Calculate PAYG instalment using income tax times


T2 8.5 % OR New varied rate T3 %

T1 x T2 (or x T3) T11 $

Write the T11 amount at 5A in the Summary

T4

tAYG income tax Instalmen

5A $

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WEEK 5 GST Introductory Ex 1

(a) Calculate the amount of GST for the following: a. $880 GST Inclusive b. $990 GST Exclusive c. $1100 GST inclusive d. $2200 GST exclusive

(b) Calculate the total selling price including GST for the following

a. $900 including GST b. $900 excluding GST c. If the amount of GST in the transaction is $32 d. If the amount of GST in the transaction is $432 e. $1200 including GST f. $2200 excluding GST

(c) What would be the amount of GST reported if the business used the CASH method for

reporting(figures include GST)

Cash sales 110,000 Amount received from debtors 220000 Credit sales 250,000

(d) What would be the amount of GST reported if the business used the ACCRUAL method for

reporting (figures include GST)

Cash sales 110,000 Amount received from debtors 220000 Credit sales 250,000

(e) What would be the amount of GST reported if the business used the CASH method for reporting

(figures include GST)

Cash Purchases 132,000 Amount paid to Creditors 330,000 Purchases made on credit 440,000

6. What would be the amount of GST reported if the business used the ACCRUAL method for

reporting(figures include GST) Cash Purchases 132,000 Amount paid to Creditors 330,000 Purchases made on credit 440,000

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Cash v Accruals Example questions Ex 2 Doreen is registered for GST operates a business with an annual turnover of $1,500,000. Details of May trading are as follows. All amounts include GST Credit Sales Invoiced during

May Cash received During May

B Bennett 8,800 - J James 6,600 3,300 K. Dodd 12,100 8,800 Credit Purchases Invoices

received during May

Cash Paid during May

J Jewell 4,400 3,300 K Warriss 6,600 5,500 S Laurel 7,700 2,200 Required: Calculate Doreen’s net GST liability under accrual and cash. Solution Accrual Basis Credit Sales Invoiced during

May GST Amount Total

B Bennett J James K. Dodd Credit Purchases Invoices

received during May

J Jewell K Warriss S Laurel Net GST Liability Cash Basis Credit Sales Cash received

during May GST Amount Total

B Bennett J James K. Dodd Credit Purchases Cash Paid

during May

J Jewell K Warriss S Laurel Net GST Liability

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Ex 3 For each of the transactions below, state when the transaction would be reported on the BAS. All Business owners complete a monthly BAS Transaction Accruals Basis Cash Basis Joanne bought $7,700 worth of stock on credit in February. She paid the invoice in April

Feb April

Gail paid bank fees of $15 in March Bruce made cash sales of $25,000 in April Benny issued a purchase order to a supplier for $700 worth of goods in February. The order was invoiced and delivered in March, and payment made in April

Joanne returned $350 of purchases to a supplier in April. She had not yet paid for the stock which was invoiced in March

Bruce made sales of $14,200 on credit in in May. He collected half of the payments in May and half in June

Of the above sales made by Bruce $500 worth of goods were returned in July and a cash refund given

Ex 4 Scott owns a bakery and is registered for GST.He reports quarterly and has provided the following information for the March quarter: Cash Sales during the quarter 12,540 Credit sales during the quarter 5,500 Payments received for credit sales 5,000 Cash Purchases made during the quarter 6,335 Purchases made on credit 3,200 Payment made on credit invoices 1,950 Required: Prepare labels G1,G11, 1A and 1B for Scott’s BAS and calculate GST liability for the March quarter under both cash and accruals. Ex 5

Marsh & Asoka is registered to report GST. Quarterly and has provided the following information for the September quarter:

Cash Sales during the quarter 9,382 Credit sales during the quarter 25,500 Payments received for credit sales 16,390 Cash Purchases made during the quarter 7,750 Purchases made on credit 5,994 Payment made on credit invoices 11,950 Required: Prepare labels G1, G11, 1A and 1B for Scott’s BAS and calculate GST liability for the March quarter under both cash and accruals.

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GST Worksheet Exercises Ex 6 Hubert operates small business selling candles on the internet. He accounts and reports GST on an accrual basis. During the quarter ended 30 June 2015, Hubert received the following;: Wages from part time teaching job 7,300 Sales of Candles(including GST) 42,849 Export of candles 1,395 Proceeds from trade in of old computer 426 Sale of office printer 520 Interest received 35 GST refund from previous quarter 201 Bothe computer and printer were exclusively use in Hubert’s business. Required: Calculate G1-G5 for Hubert’s June quarter 2015 BAS Ex 7 BHG assembles and sells computer desks .The company accounts and reports GST on an accrual basis. During the quarter ended 31 March 2015 the following transactions occurred Sales(including GST) 432,000 Export sales 132,000 Interest income 1322 Fully franked dividend income 2200 Proceeds from sale of motor Vehicle 19,000 Prior year tax refund 2,334 Deposits taken for future sales of desks(amounts refunded if sale is not completed)

12,000

The motor vehicle was used 100% for business Required: Calculate G1 for BHGs March quarter 2015 BAS

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Exercise 8 Bing operates a small business selling and repairing two way radios to the US and Australia. He accounts and reports GST on an accrual basis. During the quarter ended 30 Septemeber,2015, Bing received the following;: Domestic sales 65,000 International sales 15,000 Interest received 432 Freight on domestic sales 5699 Repair of radios return to customer in the USA 1060 Domestic freight on Export sales 2360 Required: Calculate G1 and G2 for Bings September quarter 2015 BAS Exercise 9 Roy owns a six story building in Brisbane. The building is fully tenanted, with a number of businesses occupying the offices on the lower levels and residents occupying the apartments on the top floors During the quarter he earns the following: Office 1 990 Office 2 1,300 Office 3 1,900 Apartment 4 1,750 Apartment 5 1,750 Apartment 6 1,580 Apartment 7 1,475 Total 10,745 All amounts include GST where applicable Required Complete labels G1 to G4 of the worksheet

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Errors & Adjustments Exercise 10 Kay’s catering supplies operates on an accruals basis and reports quarterly to the ATO. For the current quarter the business generated gross sales of $23,500. During that time Kay received a discount of $2,000 on bulk purchases of napkins . One of her customers closed down with an outstanding account of $650 which Kay wrote off as a bad debt. Required: Required Complete labels G1 to G7 of the worksheet Exercise 11 Mistake/Omission Select one appropriate solution from the

following • Error • Increasing adjustment • Decreasing adjustment

You have just discovered that 2 year ago you left out $40,000 of taxable supplies from the BAS

You have allowed a discount of 2% on an invoice paid by customer in a previous reporting period

You misread an invoice and included a purchase of $8,600 as $6,800 in a prior BAS period

You have failed to claim input tax credits on an invoice of $3,300 in the last BAS

You are now aware that a taxable sale of $3,450 from the last quarterly BAS was incorrectly reported as tax free

A sale of $4,300 reported in a prior BAS has become taxable

A customer returns goods for a refund A debt for a taxable supply becomes bad and you have written it off

The use of a $2200 photocopier has now become private

Exercise 12 Miss Hunter’s Dance academy has calculated its total sales subject to GST (before adjustment) to be $35,400 for the June quarter. Miss Hunter received $220 early payment discount from its ballet shoes supplier for paying their invoice before the due date. Calculate GST payable on sales for the quarter and complete G6-G9 of the Calculation Worksheet

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Comprehensive Sales Exercises Ex 13. Barista International imports and exports wholesale and retail coffee beans, and machines. The company accounts for GST on an accruals basis. The following occurred during June quarter Domestic sales 186,812 Export sales 52,000 Fully Franked dividend received 2,305 Sale of Motor vehicle 8,000 Prior year tax Refund 5,256 Deposits taken for coffee machines(not invoiced) 6,500 Freight on domestic sales 5,699 Repair of coffee machine(returned to customer in NZ) 2,360 Coffee bean sales(GST-Free) 2,555 Interest charged on overdue account 250 Bad Debts Recovered 5,500 The motor vehicle was used 100% in the business Required: Calculate items G1-G9 of the GST calculation worksheet Ex 14 Lotsa Bubbles manufactures a range of soft drinks and bottled water for domestic and export markets. The company accounts for GST on an accruals basis. The following occurred during December quarter. Domestic soft drinks 253,890 Export sales 34,700 Fully Franked dividend received 17,605 Sale of Machinery 24,500 Sept quarter Bas Refund 990 Advance Deposits taken for soft drink orders(Not Invoiced) 12,560 Domestic Freight charged to customers for Australian sales 21,000 Freight charged on export sales for transport to Newcastle port(NSW) 2,450 Bank Loan 150,000 Interest received 13,900 Discounts received 4,220 Required: Calculate items G1-G9 of the GST calculation worksheet

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Creditable Acquisitions Ex 15 Cathie is managing partner of a legal practice in Sydney CBD. Cathie’s practice has a turnover of $1.3 million and reports GST on an accrual basis Cathie incurred the following costs in the quarter ended June Rent 17,360 Wages 96,253 Electricity 963 Electricity repairs 1,800 Computer system upgrade 14,153 Software licenses for quarter 2,200 Fresh fruit for office and waiting room 260 Printer 348 Stationery 1,130 Lease payments on photocopier 2,520 Binding machine 1,900 Interest on overdraft 175 Required: Calculate items G10-G11 for the June quarter BAS Ex 16 Clean Pools operates a pool service business. Clean pools accounts and reports for GST on an accruals basis. During the March quarter they incurred the following expenses Advertising 8,659 Donations 1,000 Telephone(100% business usage) 2,568 Parking fine 189 Motor vehicle(100% business use) 44,658 Pool supplies 80,548 Laptop computer 2,999 Superannuation(employees) 3,459 Wages 26,569 Purchases for making input sales Ex 17 Jerry is a landlord who rents out a number of commercial and residential properties. Jerry is registered for GST and reports on a quarterly accruals basis. During the September 2013 quarter the following occurred: Rent received from residential premises 5,000 Rent received from commercial premises 11,000 Electrical repairs 1,320 Painting of commercial premises 4,400 Required: Calculate G1, G4, G11 & G13

BSA of 40 9/12/2014

Transactions with related parties Ex 18 . Brandon (registered for GST and reports on quarterly on accruals basis) rents out commercial and residential properties. He requires plumbing work to be done in one of his residential properties. Brandon asks his brother Brett to do the work for free. The plumbing work is valued at $550. Brandon has $3,850 worth of expenses from the commercial properties Complete G10-G13 Ex 19 Western bulldogs Loans is a financial institution that provides loans and insurance products to customers at discounted rates. Western bulldogs made the following sales in the December quarter. Interest received on loans 256,260 Interest premiums received 85,420 One of the directors of Western Bulldogs owns a commercial building with some empty floor space and has agreed to let western bulldogs occupy this space free of charge. The market rent for this floor space is $6,500 per month. Western bulldogs paid $87,200 of general business expenses during the quarter. Complete items G1-G4, G10-G13 of the calculation worksheet Transaction with Private Use and Not Income Tax deductible Ex 20 Cheryl owns a boating and fishing store. During November Cheryl and her husband flew to Hamilton Island where Cheryl attended a2 day conference for the Australian Aquacraft Association. Cheryl and her husband stayed on the island for a week and she estimates she spent 20% of the time on business and the rest on holiday. Cheryl provided the following details for the December quarter. Boats(trading stock) 312,000 Fishing rods and tackle 16,341 Rent 13,720 Trailer for transporting boats 10,995 Cheryl travel & accommodation Hamilton Island 2,680 Cheryl’s husband travel & accommodation Hamilton Island 2,680 Conference attendance fee 1,500 Parking fine 88 Complete items G10-G15 of the calculation worksheet

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Comprehensive GST Calculation worksheet Ex1 Adele is registered for GST and reports on a quarterly basis. Adele owns a 2 story building in Melbourne. On the ground floor she runs a takeaway restaurant. Upstairs is a residential unit she currently leases out. During the September Quarter, Adele had someone paint the exterior of the building which is approximately 50% apartment and 50% restaurant. Adele also had her brother fix a leaky pipe in the apartment’s bathroom for free to save the cost of $460 for professional plumbing services. She provides you with the following information for the September quarter. Income $ Restaurant Food sales 143,995 Restaurant bottled water sales(GST Free) 6,018 Restaurant beverage sales (excluding water) 87,234 June Quarter BAS refund 3,986 Interest Received 1,092 Dividends Received 3,570 Rent Received 4,940 Expenses Fresh fruit & vegetables 25,832 Fresh seafood and meat 55,712 Ice cream & confectionary 12,616 Restaurant napkins & straws 2090. Discount received from food suppliers (1,875) Wages paid to restaurant staff 37,723 New commercial oven for restaurant 10,080 Painting for building 4,300 Advertising for restaurant 3,966

Insurance 1.989 Prepare the GST Calculation Worksheet for the September quarter

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Processing payment or Refund Ex 1 During September, Billy has recorded the following liabilities in his accounting records: GST collected on sales $1750CR GST Paid on Purchases 500DR PAYG withheld from Wages $845CR

Required: Record the journal entry to record the cash payment of the September BAS Ex 2 Morecambe’s Moments has recorded the following in his accounting records during the March quarter: GST collected on sales $4,902CR GST paid on purchases $,1450DR

Morecambe lodged and paid his March BAS liability which required a NET payment of $3452

Required: Record the journal entry to record the cash payment of the March BAS

Ex 3 Terry’s tobacconist has recorded the following in his accounting records during the June quarter GST collected on Sales $5,890 GST paid on purchases $6,332 Required: Record the journal entry to record the cash payment of the March BAS

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GST Calculation Method Exercises Preliminary Q1.. Complete the following schedule, GST worksheet and BAS for 1 January to 31 March for Growers Nursery Pty Limited.

Receipts $ Collected/

Paid G1 G2 G3 G4

Sales of Plants 346,000 316,000

Sales of Garden Supplies 152,400 136,000

Landscaping fees received 110,000 98,000 Rental Income from Commercial Property 12,000 12,000

Interest Income

3,500 3,500

Payments

G10 G11 G13 G14

Purchase of vehicles 80,000 20,000

Purchase of fixtures and fittings 35,000 35,000

Electricity 11,200 11,200

Internet and Telephone 14,350 9,750

Water 21,800 21,800

Salaries & Wages 168,200 168,200

Rent of Nursery Premises 32,000 32,000

Superannuation 11,500 11,500

Depreciation 10,100 10,100

Stationery 1,110 1,110

Bank Charges 285 285

Workers Compensation Insurance 4,800 4,800

GST to be received/to be paid

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Q2. Complete the following schedule, GST worksheet and BAS for quarter 1 for Dural Scrapbooking Supplies (Sole Trader).

Receipts $ G1 G2 G3 G4

Sales of Scrapbooking Supplies 80,020

Sales of Scrapbooking Classes 25,300 Gross wages received by owner prior to shop opening 64,350 Sales Kids Scrapbooking Parties 4,490

Tips received 250

Dividends received – owner personal 450

Sales of Scrapbooking Supplies to Fiji 6,600

G10 G11 G13 G14

Payments

Purchase of Tables & Chairs 9,100

Purchase of Papers, Inks and supplies 49,600

Purchase of Computer and Software 6,800

Light & Power 9,400

Internet and Telephone 2,650

Shop fixtures and fittings 5,944

Salaries & Wages 24,850

Rent of shop space 18,000

Superannuation 1,840

Depreciation 360

Private school fees – owner’s son 20,000

bank Fees 235

Public Liability insurance 1,000


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Q3. Complete the following schedule, GST worksheet and BAS for quarter 4 for Avalon Motors

Receipts $ G1 G2 G3 G4

Sales of Motor Vehicles 589,000

Sales of Spare Parts 289,000 Service Sales 194,000 Residential Rent Received – House at Avalon owned by business 28,000 Commercial Rent Received – Office premises owned by business 24,000 Dividends Received (shares owned by business) 450

Interest income 2,200

Payments G10 G11 G13 G14

Purchase of Vehicles 298,000

Purchase of Spare Parts 175,000

Light & Power 24,400

Internet and Telephone 15,650

Showroom fixtures and fittings 5,500


Repairs to residential property 1,100


Depreciation 10,600

Repairs to commercial property 2,750

bank Fees 480

Workers Compensation insurance 4,994


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Q4. Complete the following schedule, GST worksheet and BAS for quarter 4 for Peter Printers

Receipts $ $

Collected/Paid G1 G2 G3 G4

Sales of Printing 250,000 215,000

Printing sold to New Zealand 6,750 6,750

Artwork Fees 7,000 5,500

Interest Received 1,150 1,150

Late payment Fees 660 660

Payments G10 G11 G13 G14

Purchase of Paper 76,000 65,750

Purchase of Ink and other supplies 5,000 4,300

Light & Power 9,750 3,450

Internet and Telephone 5,300 5,300

Artwork computer 33,000 33,000

Salaries & Wages 105,300 105,300

Superannuation 10,200 10,200

Depreciation 29,500 29,500

Bank Fees 480 480

Merchant Fees 2,850 2,850

Staff Birthday Lunch 350 350

Meeting Refreshments 550 550

Workers Compensation insurance 8,600 8,600

Staff Amenities (Tea, Coffee, etc.) 195 195


BSA of 40 9/12/2014

GST Accounts Method Exercises Exercise 1

Larkin Pty Limited maintains a computerised accounting system for its business which accounts for GST on an accrual basis and reports quarterly to the ATO for its Business Activity Statement obligations. Below is the company’s quarterly Profit & Loss Account and applicable general ledgers for movements in the asset accounts to highlight any capital acquisitions made during the quarter.

Required: Using the reports provided below, complete the (partially completed) Business Activity Statement (BAS) for the quarter ended 30 September 2015 using the accounts method.

Larkin Pty Limited

Profit and Loss Account for the 3 months ended 30 September 2015

Income from Service(s):

Sales 210,800.

Total Income 210,800.

Other Income:

Rent Income(Residential) 14,200.

Total Income 225,000

Expenses:

Advertising 1,430.

Bank Fees 350.

Depreciation 900.

Insurance 3,160.

Motor Vehicle Expenses 5,120.

Computer supplies 6,600.

Stationery 330.

Superannuation 5,500.

Mobile Phone/Internet 1,550.

Wages – Casual (Gross) 30,000

Residential rent expenses 3,300

Total Expenses 58,240

Net Profit 166,760

BSA of 40 9/12/2014

Larkin Pty Limited

General Ledger As at 30 September 2015

Equipment Debit Credit Balance

01//07/2015 Opening Balance 30,000.00 30,000.00 DR

30/09/2015 Bank 15,000.00 45,000.00 DR

30/09/2015 Closing Balance 45,000.00 DR

EXERCISE 2

Wood Enterprises maintains a computerised accounting system for its business which accounts for GST on an accrual basis and reports quarterly to the ATO for its Business Activity Statement obligations. Below is the company’s quarterly Profit & Loss Account and applicable general ledgers for movements in the asset accounts to highlight any capital acquisitions made during the quarter.

Required: Using the reports provided below, complete a Business Activity Statement (BAS) for the quarter ended 30 September 2015 using the accounts method.

Wood Enterprises

General Ledger

Office equipment As at 30 September 2015 Debit Credit Balance

01//07/2015 Opening Balance 10,000.00 10,000.00 DR

30/09/2015 Bank 20,000.00 30,000.00 DR

30/09/2015 Closing Balance 40,000.00 DR

Exercise 2 continued next page

BSA of 40 9/12/2014

Woods Enterprises

Profit and Loss Account for the 3 months ended 30 September 2015

Income from Service(s):

Sales 560,000

Total Income 560,000.

Other Income:

Dividend Income 11,200.

Total Income 571,200

Expenses:

Advertising 10,430.

Merchant Fees 3,500.

Depreciation 900.

Interest expenses 4,500.

Motor Vehicle Expenses

(20% private usage)

15,120.

Rent expenses 11,600.

Bad debt 3,500.

Office Expenses 4,300.

Mobile Phone/Internet 1,550.

Salaries – Casual (Gross) 45,000

Electricity 3,300

Total Expenses 103,700

Net Profit 467,500

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Luxury Car Tax (LCT) Worksheet 2015 Q1. Example; working out the LCT and GST when a Luxury Car has an “all-Up Price” a) Non-Efficient Car sold for of $97,000 including GST. The sale was made on 31 March 2015 ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ b) Working out the LCT on a fuel efficient car Jeff imported a fuel efficient car for $90,000 including GST The sale was made on 31 March 2015. Calculate the total price of the car __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Q2 what would be the expected selling price for the following:

a) Fuel efficient car with LCT value of $95,000 including GST excluding LCT ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

b) Non fuel efficient car with LCT value of $70,000 including GST excluding LCT

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

BSA of 40 9/12/2014

Wine equalisation Tax 1. Wholesale sales

Kim Keating is a wholesaler of beer, wines and spirits. In the December quarter he derived $350,000 total sales (GST Inclusive) of which $170,500 was from the sale of wine Required Calculate the WET payable

2. Wholesale sales Jazz n Wine is a wholesaler of fine wines, distributing wines direct from producers to retailers. In the September quarter Jazz n wine derived $1425920 total sales (GST Inclusive) Required: Calculate the WET payable

3 Retail sales

Loire valley wines operate a cellar door for retail sales at the vineyard. In the June quarter it made wines sales of $108,400 including GST and WET. Loire Valley uses the half retail price method for calculating its WET liability Required: Calculate the WET payable

4 Retail sales Camelbak wines operate a cellar door. In the March quarter, Camelbak wines derived $62,000 from the sale of wine. Camelbak wines use the half retail price method for calculating his WET liability. Required: Calculate the WET payable

BSA of 40 9/12/2014

Fuel Tax credit Exercise 1

You have been appointed to prepare the BAS for Joseph Landscaping. You have found the following information for the period ending 30 September 2013:

Fuels purchased:

No of Litres

LPG for use in 4 wheel drive 788

Diesel used in back hoe 616

Petrol used in blower vacuum 532

Petrol used in whipper snipper 220

Ethanol used in ute 1140

Required:

Calculate the fuel tax credit Joseph Landscaping is entitled to for the quarter

Exercise 2

Lowlands Printing has purchased and used the following fuels during the June 2014 quarter:

No of Litres

Diesel used for delivery truck (GVM 3.8 tonne) 895

Diesel for backup power generator 37

Kerosene for cleaning of printing machine 16

Petrol used for sales reps car 787

LPG used for forklift to load and unload deliveries 344

Exercise 3

Dean Lucas is a tuna fisherman. The records for the quarter show the following fuels were purchased and used:

No of Litres

Diesel used for fishing trawler engines 84,500

Diesel for backup generator on trawler 4,500

Petrol used for forklift to unload fish 625

Petrol used for high pressure hose to clean decks 78

LPG used for ute 387

Kerosene used as a cleaning agent 26

BSA of 40 9/12/2014

Comprehensive BAS Questions Question 1 BOB THE BUILDER Bob the Builder has provided you with the following information relating to his landscaping business for the quarter ended 30 September 2015 Home Building contracts

- Materials revenue $45,455 - Labour 41,995

turchases of materials 39,520 tetrol for Ute (GVM 2.5 tonne – 535 litres) 605 Diesel for back hoe (250 litres) 980 Ute repairs and maintenance 480 Insurance 230 Back hoe hire 2,660 Bookkeeping fees 330 turchase of new Nail Gun 1,110 Sub-contractor fees 9,500 Complete the (1) Excel spread sheet (2)GST Calculation Worksheet (3) BAS Question 2 GRIFFIN’S MOTORS Griffin’s Motors tty Ltd has provided you with the following information relating to their transactions for the quarter ended 31 December, 2015: Sales of vehicles (including GST and LCT) $ 556,950 Sales of luxury vehicles included above: Fuel Efficient – 1 vehicle $ 85,400 Non Fuel efficient – 3 vehicles $281,330 Commission on sale of 2nd hand vehicles $ 5,230 Sales of spare parts 85,400 Service Fees 65,000 turchases of vehicles (trading stock) $ 212,500 turchase of spare parts 35,700 Light and tower 12,750 Internet and Telephone 22,190 Sales commissions paid 17,305 Salaries & Wages 101,550 Rent of showroom premises 35,500 Superannuation 8,660 Depreciation 15,400 Bank fees 350 Merchant fees 1,985 tAYG Withholdings 34,468 tAYG Instalment rate of 6.9% Complete the (1) Excel spread sheet (2)GST Calculation Worksheet (3) BAS

BSA of 40 9/12/2014

Bob the Builder $ Total Sales Export Sales

other GST Free Sales

Input Taxed Sales

Capital turch

Non Capital turchases

turch for Input Taxed Sales

No GST turch

trivate Use turch

Materials Revenue 45,455

Labour Revenue 41,995

turchases of materials 39,520

tetrol for Ute 605

Diesel for Back hoe 980

Ute Repairs 480

Insurance 230

Backhoe Repairs 2,660

Bookkeeping fees 330

New Nail Gun 1,110

Sub-Contractor Fees 9,500

Total -

BSA of 40 9/12/2014

Question 2 Griffins Motors G1 G2 G3 G4 G10 G11 G13 G14 G15 $ Total Sales Export Sales other GST Free

Sales Input Taxed Sales

Capital turch

Non Capital turchases

turch for Input Taxed Sales

No GST turch trivate Use turch

Sales of vehicles 556,950

Commission on Sales 5,230

Sales of spare parts 85,400

Service fees 65,000

turchase of vehicles

212,500

turchase of spares 35,700

Light and tower 12,750

Internet & Telephone 22,190

Sales Commission 17,305


Rent of Showroom 35,500


Depreciation 15,400

Bank Fees 350

Merchant fees 1,985

Total -

- - - - - - - -

BSA of 40 9/12/2014

Question 3 GORDONS MOTORS Gordon Motors tty Ltd has provided you with the following information relating to their transactions for the quarter ended 31 March, 2015 Sales of vehicles (see below Note 1 $ 840,000 Commission received on sale of 2nd hand vehicles including GST 44,200 Sales of spare parts 234,542 Interest 5,400 turchases of vehicles (trading stock) $ 408,890 turchase of spare parts 65,000 Electricity 22,000 Telephone 12.140 Sales commissions paid 18,305 Salaries & Wages 240,000 Rent of showroom premises 64,000 Superannuation 24,000 turchase of new Computers 9,900 Depreciation 14,000 Bank fees 1,560 tAYG Withholdings 40,567 tAYG Instalment rate of 6.7% Required: trepare the BAS for the quarter. Note 1. This amount includes GST and LCT that Gordon Motors was required to pay on 4 Fuel efficient cars with an “all-Up trice” of $95,019 each.

BSA of 40 9/12/2014

Gordon Motors G1 G2 G3 G4 G10 G11 G13 G14 G15 $ Total

Sales Export Sales

other GST Free Sales

Input Taxed Sales

Capital Purch

Non Capital Purchases

Purch for Input Taxed Sales

No GST Purch

Private Use Purch

Sales of Vehicles 840,000

Commission on Sales 44,200

Sales of Spare Parts 234,542

Interest Income 5,400

Purchases of vehicles

408,890

Purchase of spare parts 65,000

Electricity 22,000

Telephone 12,140

Sales commission pd to employees 18,305

Salaries and Wages 240,000

Rent of showroom 64,000


New computers 9,900

Depreciation 14,000

Bank Fees 1,960

PAYG Withholdings 40,567

Total -

BSA of 40 9/12/2014

Question 4 BOUNDS WINERIES Complete the BAS worksheet and BAS using the following information for Bound Wineries for the quarter ended 31 March 2015. ABN 20 321 444 897. There are no credit transactions. A tAYG instalment rate of 2.3% has been advised by the ATO. Following is the quarterly totals including GST where applicable:

Account Details $

Wholesale sale of wine to Retailer 471,750

Sales of old Bottling Equipment 21,000

Residential Rent Received 17,750

Commercial rent received 20,300

Export Sales of wine 68,660

Accounting & Bookkeeping Fees 2,250

Bank fees 985

Commercial rent expenses 19,550

Depreciation 17,500

Light and tower 9,335

General Insurance 6,125

Interest taid 4,265

Motor vehicle running expenses

Registration (GST Free) 825

tetrol for Ute (245 litres) 466

LtG for forklift (125 litres) 371

Diesel for backup generator (205 litres) 531

Grape purchases (GST Free) 135,700

Maintenance & repairs to Residential rental property 1,585

Superannuation paid 17,050

Telephone 3,330

turchases of new bottling equipment 98,660

Wages and Salaries (Gross) 108,430

tAYG withholdings 39,050

Fringe Benefits Tax Instalment 11,250

BSA of 40 9/12/2014

Question 4 Bound Wineries

G1 G2 G3 G4 G10 G11 G13 G14 G15

$ Total Sales

Export Sales

GST Free Sales

Input Taxed Sales

Capital Purch

Non Capital Purchases

Purch for Input Taxed Sales

No GST Purch

Private Use Purch

Wine Sales incl WET and GST

471,750

Sale of Bottle labelling machine

21,000

Residential Rent Recd

17,750

Commercial Rent Recd

20,300

Export Wine Sales

68,660

Accting & Bookkeeping

2,250

Bank Fees 985

Commercial Rent exp

19,550

Depreciation 17,500

Light & Power 9,335

General Insurance

6,125

Interest Paid 4,265

MV Running Exp

-Regn (GST Free)

825

- Petrol 466

LPG for Forklift 371

Diesel for Harvester

531

Grape Purchases

135,700

Maint & Rep - Rental Property

1,585


Internet & Telephone

3,330

Purch of Bottle labelling machine

98,660

Wages & Salaries

108,430

PAYG Wholdings

39,050

FBT Instalment 11,250

Total -

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BSA of 40 9/12/2014

Carry Out Business Activity and Instalment Tasks TPB …€¦ · Repairs to flat 1,800 . Ex 9 ....

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