Task 2C - GST Basics

1. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 2 – BALANCE SHEETS
© Michael Allison
Author’s express permission required for external or professional use
Page | 1
Name Student50
Task 2C GST Basics
Question 1
For each of the following situations, complete the missing information in the table below.
GST collected/
charged to customers
GST paid/ charged by
suppliers
GST Refund or
Liability
Amount $
a) 1950 760
b) 790 1490
c) 800 GST Liability 320
d) 1000 GST Refund 430
e) 540 GST Refund 200
f) 520 GST Liability 700
6 marks
Question 2
At the end of the current period, a business reported a GST Liability of $450 in its Balance Sheet.
Explain how GST owing to the tax office meets the definition of a Liability.
Explanation
3 marks

2. VCE ACCOUNTING
UNIT 3 – RECORDING AND REPORTING FOR A TRADING BUSINESS
CHAPTER 2 – BALANCE SHEETS
© Michael Allison
Author’s express permission required for external or professional use
Page | 2
Question 3
During the current period a firm paid $800 in GST on $8,000 stock it had purchased. With reference
to the elements of accounting, explain whether the $800 GST paid of meets the definition of an
Expense.
Explanation
2 marks
Question 4
A business provided the following information for the current period:
 GST collected on cash sales $1,600
 GST charged on credit purchases $1,200
 GST paid on cash purchases $2,300
 GST charged on credit sales $1,500
With reference to the elements of accounting, explain how GST will be classified in the Balance
Sheet of the business at the end of the period.
Explanation
1 + 3 = 4 marks
Total /15 marks