Question

1. What records must a business keep for tax and audit purposes

2. Black Ltd is registered for GST purposes. If Black Ltd purchased materials worth $10 560 of which the owner used 75% of the materials for business purposes, and the remaining 25% for private purposes. What, if any, input tax credit would Black Ltd be allowed

(c)

	Calculate the GST paid to the Tax Office.
	Manufacturer	è	Wholesaler	è	Retailer	è	End Consumer
	Price $220		Price $1 760		Price $2 200
	GST Paid $		GST Paid $		GST Paid $
	GST to ATO		GST to ATO		GST to ATO		Total GST Paid
	= $		= $		= $		= $

As a manager employed by Black Ltd one of your functions is to have control over petty cash. From the following information for a small business you are required to:

1. Complete the petty cash vouchers below

b)      The Petty Cash book

May1               The petty cashier received a cheque for $300 as the initial petty cash imprest.

During the following week you as the petty cashier paid the following amounts:

May 2              Ross Carr for tea, coffee and biscuits                         $17.60

Lee Way for bus fares                                                $11

May 3              Mike Street for postage stamps                                  $33

John Lane for pens, pencils, etc.                                $22

May 6              Ross Carr for the previous weeks milk account           $13.20

Fred Wheeler for taxi fare                                          $66

May 7              Mary Driver for reception flowers                             $55

Mike Street for a large envelopes                               $19.80

May 8              Mike Street for airmail postage on parcel              $15.40

Ross Carr for office cleaning materials                        $19.80

May 9              The petty cashier requested and received a reimbursement cheque for the amount paid out.

Answer 1

a. Records that business must keep for tax and business purpose includes :

- Receipts from sales (duplicate invoices).

- Bank statements.

- Loan account details.

- Purchase invoices.

- Payroll records.

- Expenses supporting (bills).

- Previous tax returns.

- Employment tax records.

- Previous audit reports.

- Contingent liabilities supporting.

- Asset purchase records.

Above records should be maintained by each and every business for tax and business purpose. They act as evidence and basis for preparation of financial statements i.e, statement of financial position, income statement, cash flow statement, notes to financial statement, etc.  

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