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ABC Pty Ltd run a restaurant business

Finance

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ABC Pty Ltd run a restaurant business. The company uses the cash basis when accounting for GST and is required to use Option 1 to prepare - and lodge a Business Activity Statement (BAS) for the period 1 April to 30 June 2019.

ABC Pty Ltd is required to pay PAYG instalments quarterly. There are two options to calculate how much to pay:

 

Option 1: ABC Pty Ltd is required to pay instalment amount of $15,000 quarterly.

Option 2: ABC Pty Ltd is required to pay PAYG instalment with the instalment rate of 4% in each quarter.

 

ABC Pty Ltd chooses Option 2 to work out the amount for PAYG instalments.

The following information has been summarised from the company's book for the required period and is to be used when completing the calculation sheet and BAS.

 

Receipts and Income

Sales (including GST) $295,000

Bank interest from the accounts under company's name $1,000

Dividend income $5,500

 

Payments and Purchases

Purchase of meats and vegetables $90,000

Purchase of bottled drinking water $1,100

Purchase of carbonated beverages $14,300

Quarterly rent $44,000

Purchase of cash registers and computers (100% related to business) $22,000

All the other operating expenses (including GST) $45,300

GST payment for previous quarter to ATO $3,000

Total salary paid to the employees $60,000

Tax withheld $12,000

Superannuation guarantee contributed to employees' super account $5,500

 

The above costs and expenses include GST where applicable.

 

Assuming that full reporting method is used, complete the GST Calculation Worksheet and prepare Business Activity Statement for ABC Pty Ltd for the period 1 April to 30 June 2019.

 

Note: You are required to use 2018-19 tax rates and thresholds for all the questions