[niggz]

Accounting has recently been confusing me bad !

I just need some help on how to figure out the GST paid using the following information:

Michel Foucault has been in the business for 10 years. His catering firm, The Order of things is well known. He provides high quality lunches for corporate meetings in Melbourne's CBD. At the end of June 2012 he has $1,500 in the business's bank account. Another concern is that, during the next three months, Michel must replace the firm's van. The new vehicle, that he wants, costs $30,000. The deposit is $10,000. A concerned friend recommends that he should prepare a long-term forecast of future transactinos before making a decision to buy the van. So, Michel rang you for assistance.

-The quarter July to September is his busiest time and he earned the following cash fees: July $20,000, August $21,000 and September $24,000 in 2011 and he expects to earn cash fees about 10% higher than before each month.
-GST received is expected to be 10% of Cash fees.
-Cost of materials are 25% of the cash fees expected for July to September 2012.
-Mitchel employs two waiters and they both earn $500 per week each and are paid each Friday. He also employs a drink waiter at $250 per week who is also paid each Friday. {NOTE: There are 4 Fridays in July & September and 5 Fridays in August in 2012
-Petrol expenses each month are $600 plus $60 GST.
-Insurance on the van is due on 1 July. It is expected to cost $1,500 this year. Vehicle registration is due 5 September. It is expected to be $390.
-Business cards for advertising cost $160 plus $60 GST per month.
-Michel incurs office expenses of $100 plus $10 GST per month.
-Loan repayments of $3,100 are due on 20 July, 20 August and 20 September.
-Michel usually withdraws $1,000 each Friday for personal use [Remember there are 4 Fridays in July & September and 5 Fridays in August in 2012

Question: Calculate the budgeted GST paid for the month of July, August & September of 2012.

I'd really appreciate it if someone showed me how to figure this out.

[paraclete]

Accounting has recently been confusing me bad !

I just need some help on how to figure out the GST paid using the following information:

Michel Foucault has been in the business for 10 years. His catering firm, The Order of things is well known. He provides high quality lunches for corporate meetings in Melbourne's CBD. At the end of June 2012 he has $1,500 in the business's bank account. Another concern is that, during the next three months, Michel must replace the firm's van. The new vehicle, that he wants, costs $30,000. The deposit is $10,000. A concerned friend recommends that he should prepare a long-term forecast of future transactinos before making a decision to buy the van. So, Michel rang you for assistance.

-The quarter July to September is his busiest time and he earned the following cash fees: July $20,000, August $21,000 and September $24,000 in 2011 and he expects to earn cash fees about 10% higher than before each month.
-GST received is expected to be 10% of Cash fees.
-Cost of materials are 25% of the cash fees expected for July to September 2012.
-Mitchel employs two waiters and they both earn $500 per week each and are paid each Friday. He also employs a drink waiter at $250 per week who is also paid each Friday. {NOTE: There are 4 Fridays in July & September and 5 Fridays in August in 2012
-Petrol expenses each month are $600 plus $60 GST.
-Insurance on the van is due on 1 July. It is expected to cost $1,500 this year. Vehicle registration is due 5 September. It is expected to be $390.
-Business cards for advertising cost $160 plus $60 GST per month.
-Michel incurs office expenses of $100 plus $10 GST per month.
-Loan repayments of $3,100 are due on 20 July, 20 August and 20 September.
-Michel usually withdraws $1,000 each Friday for personal use [Remember there are 4 Fridays in July & September and 5 Fridays in August in 2012

Question: Calculate the budgeted GST paid for the month of July, August & September of 2012.

I'd really appreciate it if someone showed me how to figure this out.

Firstly GST is paid on actual cash transactions but do not include payroll. You can handle this two ways record all transactions including GST and calculate your liability,
Secondly isolate the GST component and construct your GST return
GST is not payable on proprietor's drawings
Loan repayments usually do not include GST

Calculating budgetted GST is a matter of applying a formula to applicable transactions, but has little relevance to actual liability. Lastly tax does not drive the business. Michael receives the benefit of the purchase in his business in the quarter he makes the purchase because the other side of the transaction is a loan and as long as he has a tax invoice he may include the transaction in his calculation yielding a cash benefit to the business by dimishing his liability in that quarter. The number of weeks in any month have little relevance unless they are associated with the month at the close of the quarter whan an overlap may occur, most quarters contain 13 weeks which is all you need to know for budgetting purposes