Accounting Practice Questions (1 Viewer)

[MickeyB]

Wondering if anyone can help me with these accounting problems that I have. It would be much appreciated if someone could help with some of them. Thanks

Do you reverse PAYG withholding Payable and Income tax payable? What would the entry be for the PAYG if it were?

How do enter entries such as when you pay net wages so say cash $3900 (gross wages $5200 and PAYG withholding $1300)?

If there is a transaction such as got loan for $395000 for purchase of land and buildings. Value of land is $180000 and buildings $220000 but already paid deposit of $5000 for land what would the entry would be?

If I have to forward cash payment to ATO for June quarter of GST collected $4500, less GST paid $2720, PAYG Withholding $8420 and PAYG installment of $4770 what would the entry be?

 

[mr_shittles]

Wondering if anyone can help me with these accounting problems that I have. It would be much appreciated if someone could help with some of them. Thanks

Do you reverse PAYG withholding Payable and Income tax payable? What would the entry be for the PAYG if it were?

How do enter entries such as when you pay net wages so say cash $3900 (gross wages $5200 and PAYG withholding $1300)?

If there is a transaction such as got loan for $395000 for purchase of land and buildings. Value of land is $180000 and buildings $220000 but already paid deposit of $5000 for land what would the entry would be?

If I have to forward cash payment to ATO for June quarter of GST collected $4500, less GST paid $2720, PAYG Withholding $8420 and PAYG installment of $4770 what would the entry be?

PAYG Witholding is the tax you withold from employees as part of the Pay as You Go Tax System. The money is actual the employee's share of tax.

Income Tax Payable is the Company Tax that the company owes the ATO for its corporate profits.

DR Wages Expense 5,200
CR Cash 3,900
CR PAYG Witholding Payable 1,300

DR Land (Asset) 180,000
DR Building (Asset) 220,000
CR Loan (Liability) 395,000
CR Deposit on Land (Asset) 5,000

DR PAYG Payable (L) 3,650
DR GST Payable (L) 1,780
CR Cash (A) 5,430

Witheld means what you have collected off your employee and Installment is what you have paid to the Tax Office.

In terms of GST liability, a company is liable for their net collections of the tax. If they pay more GST than they collect, that means the Tax Office will give them money back, or reduce their total tax payment.

Homework done!

Those are really basic Accounting 1A questions. If you can't work those out on your own, then you will probably won't be able to pass the course. Luckily, your exams are probably a few weeks away, so if you seek help from your tutor early enough, and ask them to run through the questions with you, then you'll be in a much better position.

Hope that helped!