Difference between pages "General Journal" and "GST"

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General Journal - All the financial transactions are recorded in chronological order where each transaction affects at least two accounts, and they must balance
+
====GST Overview====
  
'''Note:''' each entry must only contain one single transaction (source document)
+
[https://www.ato.gov.au/Business/GST/ ATO GST Page]
  
====Examples: Not Registered for GST====
+
"Goods and services tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia."
  
1. Shopping trip to The Office Depot - Purchased a stapler (cash/eftpos)
+
The "most" in this statement is the most misleading word there is.
  
{| class="wikitable" style="width: 50%;"
+
There are '''so''' many variations, exemptions and interpretations.
!colspan="4"|General Journal Example (Simple)
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|-
+
|'''Date'''
+
|'''Account'''
+
|'''Debit'''
+
|'''Credit'''
+
|-
+
|June 30
+
|Stationery
+
| style="text-align:right;" | 1,100
+
|
+
|-
+
|
+
| style="text-align:center;" | Cash At Bank
+
|
+
| style="text-align:right;" | 1,100
+
|-
+
|
+
|For the purchase of a really nice stapler
+
|
+
|
+
|}
+
<br>
+
2. Shopping trip to The Office Depot - Purchased a stapler and some water for the staff room (cash/eftpos)
+
{| class="wikitable" style="width: 50%;"
+
!colspan="4"|General Journal Example (Less Simple)
+
|-
+
|'''Date'''
+
|'''Account'''
+
|'''Debit'''
+
|'''Credit'''
+
|-
+
|June 30
+
|Stationery
+
| style="text-align:right;" | 1,100
+
|
+
|-
+
|
+
|Staff Amenities
+
| style="text-align:right;" | 200
+
|
+
|-
+
|
+
| style="text-align:center;" | Cash At Bank
+
|
+
| style="text-align:right;" | 1,300
+
|-
+
|
+
|For the purchase of a really nice stapler and water
+
|
+
|
+
|}
+
<br>
+
3. Shopping trip to <br>The Office Depot - Purchased a stapler and some sugar for the staff room (cash/eftpos)<br>The Techno Junkies - Purchased a new cable (on account)
+
{| class="wikitable" style="width: 50%;"
+
!colspan="4"|General Journal Example (Less Simple)
+
|-
+
|'''Date'''
+
|'''Account'''
+
|'''Debit'''
+
|'''Credit'''
+
|-
+
|June 30
+
|Stationery
+
| style="text-align:right;" | 1,100
+
|
+
|-
+
|
+
|Staff Amenities
+
| style="text-align:right;" | 200
+
|
+
|-
+
|
+
| style="text-align:center;" | Cash At Bank
+
|
+
| style="text-align:right;" | 1,300
+
|-
+
|
+
|For the purchase of a really nice stapler and water
+
|
+
|
+
|-
+
|June 30
+
|Computer Expense
+
| style="text-align:right;" | 440
+
|
+
|-
+
|
+
|style="text-align:center;" | Accounts Payable
+
|
+
| style="text-align:right;" | 440
+
|-
+
|
+
|New computer cable
+
|
+
|
+
|}
+
====Examples: Registered for GST==== ''' <span style="color: red"> In Progress'''
+
1. Shopping trip to The Office Depot - Purchased a stapler (cash/eftpos)
+
  
{| class="wikitable" style="width: 50%;"
+
Examples:
!colspan="4"|General Journal Example (Simple)
+
* Most insurances
|-
+
* Phone bills that still include the white/yellow pages listing
|'''Date'''
+
* Food
|'''Account'''
+
* Imported goods
|'''Debit'''
+
* Digital goods
|'''Credit'''
+
* Fees and charges
|-
+
* Australian v non Australian companies
|June 30
+
* Second hand goods
|Stationery
+
* Trading of going concerns
| style="text-align:right;" | 1,100
+
* Business to Business v Business to Consumer
|
+
* Precious metal trading
|-
+
 
|
+
The best and only way is having a copy of the [[source document]] available to confirm GST treatment and or know the relevant part of the tax act for the required treatment (yes/no or part GST)
| style="text-align:center;" | Cash At Bank
+
 
|
+
This knowledge is another difference between a data entry Bookkeeper and a great Bookkeeper (and why only registered BAS agents are allowed to provide fee for service where GST is coded)
| style="text-align:right;" | 1,100
+
 
|-
+
====GST Basics====
|
+
 
|For the purchase of a really nice stapler
+
* Register for GST
|
+
* Work out whether your goods and or services are taxable (you can have a mixture)
|
+
* Issue tax invoices for your all of your sales
|}
+
* Keep all of your bills for your purchases that include GST (if you cant provide the source document you cannot claim the GST deduction)
<br>
+
* Account for our GST - difference between GST collected from your sales and GST paid on your purchases (don't spend it, its not yours)
2. Shopping trip to The Office Depot - Purchased a stapler and some water for the staff room (cash/eftpos)
+
* Complete your activity statment (BAS) and either pay your GST liability or be refunded.
{| class="wikitable" style="width: 50%;"
+
!colspan="4"|General Journal Example (Less Simple)
+
|-
+
|'''Date'''
+
|'''Account'''
+
|'''Debit'''
+
|'''Credit'''
+
|-
+
|June 30
+
|Stationery
+
| style="text-align:right;" | 1,100
+
|
+
|-
+
|
+
|Staff Amenities
+
| style="text-align:right;" | 200
+
|
+
|-
+
|
+
|GST Payable
+
| style="text-align:right;" | 100
+
|
+
|-
+
|
+
| style="text-align:center;" | Cash At Bank
+
|
+
| style="text-align:right;" | 1,300
+
|-
+
|
+
|For the purchase of a really nice stapler and water
+
|
+
|
+
|}
+
<br>
+
3. Shopping trip to <br>The Office Depot - Purchased a stapler and some sugar for the staff room (cash/eftpos)<br>The Techno Junkies - Purchased a new cable (on account)
+
{| class="wikitable" style="width: 50%;"
+
!colspan="4"|General Journal Example (Less Simple)
+
|-
+
|'''Date'''
+
|'''Account'''
+
|'''Debit'''
+
|'''Credit'''
+
|-
+
|June 30
+
|Stationery
+
| style="text-align:right;" | 1,100
+
|
+
|-
+
|
+
|Staff Amenities
+
| style="text-align:right;" | 200
+
|
+
|-
+
|
+
| style="text-align:center;" | Cash At Bank
+
|
+
| style="text-align:right;" | 1,300
+
|-
+
|
+
|For the purchase of a really nice stapler and water
+
|
+
|
+
|-
+
|June 30
+
|Computer Expense
+
| style="text-align:right;" | 440
+
|
+
|-
+
|
+
|style="text-align:center;" | Accounts Payable
+
|
+
| style="text-align:right;" | 440
+
|-
+
|
+
|New computer cable
+
|
+
|
+
|}
+

Revision as of 04:07, 16 November 2018

GST Overview

ATO GST Page

"Goods and services tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia."

The "most" in this statement is the most misleading word there is.

There are so many variations, exemptions and interpretations.

Examples:

  • Most insurances
  • Phone bills that still include the white/yellow pages listing
  • Food
  • Imported goods
  • Digital goods
  • Fees and charges
  • Australian v non Australian companies
  • Second hand goods
  • Trading of going concerns
  • Business to Business v Business to Consumer
  • Precious metal trading

The best and only way is having a copy of the source document available to confirm GST treatment and or know the relevant part of the tax act for the required treatment (yes/no or part GST)

This knowledge is another difference between a data entry Bookkeeper and a great Bookkeeper (and why only registered BAS agents are allowed to provide fee for service where GST is coded)

GST Basics

  • Register for GST
  • Work out whether your goods and or services are taxable (you can have a mixture)
  • Issue tax invoices for your all of your sales
  • Keep all of your bills for your purchases that include GST (if you cant provide the source document you cannot claim the GST deduction)
  • Account for our GST - difference between GST collected from your sales and GST paid on your purchases (don't spend it, its not yours)
  • Complete your activity statment (BAS) and either pay your GST liability or be refunded.