Consider the two sets of financial data shown. GEF Organisation BAS Summary Shee

Question

Consider the two sets of financial data shown.

GEF Organisation BAS Summary Sheet

Prepared by the Financial Officer

For the period ending 30.9.20xx

GST Received on income

$2,500

GST Paid on expenses

$2,500

Plus PAYG on wages

$10,000

GST Payable/ (Receivable)

$10,000

From the ATO

GEF Organisation BAS Summary Sheet

Prepared by the Financial Officer

For the period ending 30.12.20xx

GST Received on income

$100,000

GST Paid on expenses

$2,500

Plus PAYG on wages

$10,000

GST Payable/ (Receivable)

$107,500

From the ATO

a. What would be of interest to the financial manager responsible for preparing the BAS based on the reports?

b. For what reason would this be of interest?

c. What steps should the financial manager take in this scenario?

GEF Organisation BAS Summary Sheet

Prepared by the Financial Officer

For the period ending 30.9.20xx

GST Received on income

$2,500

GST Paid on expenses

$2,500

Plus PAYG on wages

$10,000

GST Payable/ (Receivable)

$10,000

From the ATO

Explanation / Answer

The financial manager of the organization is responsible for the financial health of the organization. The business activity statement helps to record and pay the goods and service tax. Here in the example in both the cases the GST is being paid so the financial manager will like to make a business activity statement to calculate the GST of the organization and thereby finding the health of the organization.

This is important for the financial manager as there are GST that are to be paid both the company has to pay the GST and thereby the BAS helps to record and pay the goods and service tax.

The financial manager should perform the business activity statement in order to record the goods and service tax that is to be paid by the organization and accordingly judge the performance of the organization. The Financial officers thereby take decision according to the condition of the company.

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