ATAR Notes: Forum

VCE Stuff => VCE Business Studies => VCE Subjects + Help => VCE Accounting => Topic started by: livva on November 11, 2012, 09:26:24 pm

Title: Does discount revenue and discount expense include GST?
Post by: livva on November 11, 2012, 09:26:24 pm

Having a mental blank here... :o

Say you had a customer buy stock worth $1000 + $100 GST, and they got a 5% discount... their discount would be $55, right?

And would you need to do any adjustments to GST clearing since the stock ended up selling for less than the original price? Or would it still be $100?

Title: Re: Does discount revenue and discount expense include GST?
Post by: abcdqdxD on November 11, 2012, 09:28:10 pm

Is this a credit sale, and the terms are 5% discount for early repayment?

Title: Re: Does discount revenue and discount expense include GST?
Post by: Michelle94 on November 11, 2012, 09:28:34 pm

the discount is 55 yes,
but its just 55 of the sales. gst remains 100

Title: Re: Does discount revenue and discount expense include GST?
Post by: livva on November 11, 2012, 09:31:40 pm

Liverpool: yes, credit sale with 5% discount for early payments.

Michelle: Thank you! That sounds right.  :)

Title: Re: Does discount revenue and discount expense include GST?
Post by: Michelle94 on November 11, 2012, 09:43:21 pm

for a sales return in the stock card, its the most recent sale cost price yeah?

Title: Re: Does discount revenue and discount expense include GST?
Post by: link125 on November 11, 2012, 09:45:34 pm

Quote from: Michelle94 on November 11, 2012, 09:43:21 pm

for a sales return in the stock card, its the most recent sale cost price yeah?

yes

because you want to make it look like the previous sale transaction didn't take place

Title: Re: Does discount revenue and discount expense include GST?
Post by: abcdqdxD on November 11, 2012, 09:47:07 pm

Discount is always calculated on total amount owing