Back to the full dot-point answer
VICAccountingQuick questions
Unit 3: Financial accounting for a trading business
Quick questions on GST and the GST Clearing account (VCE Accounting Unit 3)
3short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is gST on sales (credits)?Show answer
Credit sales GST = 40,000 times 10 percent = 4,000. Cash sales GST = 10,000 times 10 percent = 1,000. Total credited to GST Clearing = 5,000.
What is gST on purchases (debits)?Show answer
Inventory purchases GST = 25,000 times 10 percent = 2,500. Asset purchase GST = 5,000 times 10 percent = 500. Total debited to GST Clearing = 3,000.
What is net balance?Show answer
Credits 5,000 minus debits 3,000 = a net credit balance of 2,000. The business owes the ATO 2,000 dollars, reported as a current liability.
Have a question we have not covered?
This dot-point answer is short enough that we have not extracted many short questions yet. Read the full dot-point answer or ask Mo, our study assistant, in the chat for follow ups.