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Accounting Basics & GST

Here are the key steps to set up an organisation: 1. Choose an appropriate legal structure such as sole proprietorship, partnership, or corporation/company based on your needs and local laws. 2. Register the business with relevant authorities for licenses, permits, and tax registrations. This may include registering for goods and services tax (GST) or value added tax (VAT). 3. Open business bank accounts separately from personal accounts. 4. Obtain relevant insurance such as general liability, professional indemnity, or workers' compensation. 5. Develop basic financial and accounting systems for bookkeeping, payroll, and budgeting. 6. Establish standard operating procedures and policies for key

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sakshi
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77 views

Accounting Basics & GST

Here are the key steps to set up an organisation: 1. Choose an appropriate legal structure such as sole proprietorship, partnership, or corporation/company based on your needs and local laws. 2. Register the business with relevant authorities for licenses, permits, and tax registrations. This may include registering for goods and services tax (GST) or value added tax (VAT). 3. Open business bank accounts separately from personal accounts. 4. Obtain relevant insurance such as general liability, professional indemnity, or workers' compensation. 5. Develop basic financial and accounting systems for bookkeeping, payroll, and budgeting. 6. Establish standard operating procedures and policies for key

Uploaded by

sakshi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Sakshi opened a new coffee shop in Melbourne CBD

The business started on 01 July 2022


Sakshi is registered for GST. GST is 10% in Australia

Sales income - Money received from sale of coffee, food items, retails
Expenses incurred - Salaries, Electricity, Rent, Gas, Office Equipment, Eftpos Machine, Coffee beans

At the end of July 2022 and below are the bank transactions for the business for period starting from 01 July 2022 up to 31 J
1. Sakshi introduced $10,000 from her personal savings into the coffee business.
BANK
CAPITAL

2. Sakshi borrowed $10,000 from CBA to support her new coffeee business.
BANK
CBA LOAN

3. Sakshi purchase coffee beans from Woolworths costing $500 (exclusive of GST). Payment was made via business debit card.
Purchases
GST on Purchases
BANK

4. Sakshi made a prepayment for Business Insurance amounting to $1100 (inclusive of GST).
PREPAID INSURANCE
GST ON PURCHASES
BANK

5. Sakshi paid $200 to Vidhi in form of wages for the first week of July 22
WAGES
BANK

6. Sakshi purchased a coffee machine work $2,500 (inclusive of GST)


Coffee Machine
GST on Purchase
BANK

Additional Information:
CBA charged $10 as account keeping fees for the month of July 22
Depreciation @10% p.a on Office Equipment
Donations
DEBIT CREDIT

$ 10,000.00
$ 10,000.00

$ 10,000.00
10,000

$ 500.00
$ 50.00
$ 550.00

$ 1,000.00
$ 100.00
$ 1,100.00

$ 200.00
$ 200.00

$ 2,272.73
$ 227.27
$ 2,500.00

$ 10.00
GST ON PURCHASES
ASSET ACCOUNT - SET OFF IS A BENEFIT

GST ON PURCHASES

BAS EXCLUDED

110
100

GST FREE

NOTE: Interest is excluded from GST


```
GST IS LEVIED ON INCOME
LESS: GST IS PAID ON EXPENSES (REVENUE OR CAPTAL)
NET GST PAYABLE/(REFUNDABLE)

ITEMS NOT SUBJECT TO GST IN AUSTRALIA


BANK FEES
MOTOR VEHICLE REGISTRATION
MILK, TEA, COFFEE, MEAT,EGGS (SELECTED FOOD ITEMS)
HEALTHCARE (DENTAL SERVICES, MATERNITY)
ENTERTAINMENT EXPENSE

GST ON SUPPLY (INCOME/SALES/SERVICES)


TAXABLE SERVICE/SUPPLY
GST FREE
INPUT TAXED SUPPLY

FINANCIAL SERVICES - OUTSIDE THE SCOPE OF GST


WAGES
SUPERANNUATION
INTEREST EXPENSE
LEASE PAYMENT
LOAN TAKEN/REPAID

GST RETURN - BUSINESS ACTIVITY STATEMENT (BAS)


GST FREE - NOT SUBJECT TO GST

SAKSHI TOOK HER CLIENTS FOR DINNER AND AT THE DINNER SAKSHI AND THE CLIENTS HAD ALCOHOL

GST IS LEVIED
NO GST IS TO BE RECEIVED OR PAID
NOT SUBJECT TO GST AS PER GOODS AND SERVICE TAX ACT 1999
GST CODE
GST ON SALES/GST OSALE OF COFFEE CAN CLAIM GST ON PURCHASES BENEFIT OF SET OFF
GST FREE DENTAL SERVICES CAN CLAIM GST ON PURCHASES BENEFIT OF SET OFF
BAS EXCLUDED FINANCIAL SERVICES CANNOT CLAIM GST ON PURCHASNOT BENEFIT OF SET OFF
1. SET UP ORGANISATION

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